Class-Action against Harley Davidson!
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Thread: Class-Action against Harley Davidson!

  1. #1

    Class-Action against Harley Davidson!

    Quote Originally Posted by MD
    According to a statement by the law firm of Lerach Coughlin, etc. published on their web site on May 25 2005, a class action lawsuit has been commenced on behalf of investors in Harley stock against Harley Davidson, Inc. in Federal Court in Wisconsin.

    The law firm refers to a disclosure by Harley-Davidson on April 13, 2005 that it would be forced to cut production of new 2005 motorcycles (as previously reported by MD) due to declining demand and increased inventories at its dealers. Here is an excerpt from the May 25 2005 statement by Lerach Coughlin. The entire statement can be found here.

    According to the complaint, during the Class Period, as defendants continued reporting quarter after quarter of “record” revenues and earnings, promising mid-teen earnings per share growth rates in fiscal 2005 and that Harley-Davidson would break the psychological barrier of shipping 400,000 new motorcycles by 2007, Harley-Davidson’s stock price traded at inflated levels, increasing to as high as $63.75 on July 14, 2004. During this same period, defendants caused Harley-Davidson to repurchase 10.6 million shares for $564 million in fiscal 2004 and another 2.9 million shares for over $175 million during the first quarter of 2005, further driving up the Company’s stock price. Meanwhile, the Company’s top officers and directors sold almost $92 million worth of their own shares, including the Company’s Chairman and Chief Executive Officer who sold over $50 million worth of Harley-Davidson stock himself. Then, on the April 13, 2005 disclosure, the Company’s stock price plummeted by 16.7% in a single trading session, or $9.84 per share, and would fall a total of 22% by April 15, 2005. Over $3.6 billion in market capitalization was erased.

    The complaint alleges that the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) demand for Harley-Davidson motorcycles was declining and the Company’s market share was shrinking; (b) the number of unsold 2004 and 2005 model year motorcycles in dealer inventories was growing exponentially; and (c) over-stocked inventories were running down the price dealers could obtain for new motorcycles.
    No wonder a Harley keychain costs $75!

  2. #2
    its the stock market. every press release, every statement, every notice, every everything discussed by a publicly traded company comes with a standard disclaimer basically saying its all speculation, and nothing they say is gospel.

    from a press release by my old publicly traded company:

    This press release includes statements that may constitute forward-looking statements, usually containing the words “believe,” “estimate,” ”project,”
    “expect,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
    1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking
    statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s
    products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in
    the Company’s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company
    undertakes no obligation to update these statements for revisions or changes after the date of this release.

    this is a company that went from $12 a share to penny stocks, and may as well have been delisted. or obt.

    the president was fired over a fiasco about his dream tv show. he basically bet the farm on this show and lost. paid big bucks to buy out the star's contract because he sucked. the show went on, and was critically acclaimed. ratings? not so much. a second season was ordered anyways, but we were the only ones not able to come up with financing. show folded, prez got canned. company ended up in a reverse merger, moved head office to toronto, and still is a penny stock.

  3. #3
    Registered User Array RoscoeP's Avatar
    Join Date
    May 2003
    Comox, BC
    KTM 625 smc & DR 650

    HD Sucks!

    I think all these "biker build shows" on TV and all the independent companys that are building bikes are cutting into Harleys share of the market. Bigdog and Vengence to name two, make bikes alot nicer than any HD. A person on a Harley at Sturgis during bike week better have a flag on there bike if they want to find it, they all look alike.
    HD was sure doing a good job of convincing the public that there old technology was superior? what ever, buy the bike, jacket, chaps, vest and god don't forget the black t-shirt, nothing like all black on a hot day.( oh yea the attitude that comes free with the bike)
    Then there's all the crap components on the bike like the grips and mirrors etc. Gotta get rid of them and buy better ones. For $25k they could do better!
    I used to own one, what was I thinking? Now I can't stand the sight of them. Anyways I'am done my little rant. Cheers
    Last edited by RoscoeP; 06-03-2005 at 12:38 PM. Reason: spelling
    Easy Flash!

  4. #4
    It's kinda funny though. I thought the new Harley line of "Heritage Springer" Pregnancy Tests, "Billet Fatboy" Saladspinners, "V-Rod" Coathangers and "Baby's First Harley" diaper rash creme were gonna put Harley back in the Power Cruiser category.

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