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Revolution Lighting Revenue Recognition Draws Derivative Suit

May 2, 2019, 8:26 PM

Revolution Lighting Technologies Inc. faces a shareholder derivative suit over allegations its directors misled investors about improper revenue recognition practices.

The company didn’t enlighten investors about problems with the way it recognized revenue for some transactions, the complaint filed May 1 in the U.S. District Court for the Southern District of New York said.

Revolution Lighting’s alleged wrongdoing drew Securities and Exchange Commission attention and caused the company’s stock to drop, the complaint said.

A would-be securities class action is pending against the company over similar allegations.

Causes of Action: Exchange Act §10(b)—Using a manipulative or deceptive device or contrivance ...

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