Flex Ltd.

On April 26, 2018, Flex issued a press release disclosing allegations by a former employee that the Company improperly accounted for obligations in a customer contract and certain related reserves. The Company further announced that its Audit Committee was undertaking an investigation of the matter with the assistance of independent outside counsel.

On this news, Flex’s share price fell $3.61, or 21.7%, to close at $13.03 per share on April 27, 2018, thereby injuring investors.

Then, on October 25, 2018, Flex revealed that it would wind down its co-manufacturing project with Nike in Guadalajara, Mexico because it was unable to reach a “commercially viable solution” and that its CEO, who had taken “direct ownership” of the project with Nike to ensure its “operational success,” had retired.

On this news, Flex’s share price fell $3.82, or over 35%, to close at $7.09 per share on October 26, 2018, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) that the Company lacked adequate internal control over financial reporting including those related to customer contracts; and (2) that the Company had experienced operational issues with the project with Nike.