Lowey Dannenberg is investigating Matrix Service Company (“Matrix” or the “Company”) (NASDAQ: MTRX) and certain of its officers and/or directors for potential violation of federal securities laws or other unlawful business practices in connection with Matrix’s disclosures relating to the Company’s performance in its electrical infrastructure segment. More specifically, Matrix is suspected to have mislead investors regarding the operational processes and management it had in place during the relevant time period.
On February 5, 2020, the Company released its second quarter financial results, disclosing that it had recorded a goodwill impairment of $24.9 million in its electrical infrastructure segment. In its press release published in connection with the quarterly financial report, the Company stated that “the impairment of the goodwill was due to the financial performance of portions of the power delivery business that led to the recent history of depressed gross margins, which accelerated during the second quarter.” As a result, Matrix informed investors that it is “implementing significant changes to the operations and management of the business, including changes to leadership, modifications to operational processes, changes to mid-level operational personnel, and increased business development resources.”
Following the Company’s publication of its second quarter financial results, the price of the Company’s shares fell $7.00 per share, representing more than 35%, to close at $12.85 per share on February 6, 2020.
If you are a shareholder of Matrix who suffered a loss, we encourage you to contact attorney Andrea Farah of Lowey Dannenberg at (914) 733-7256 or firstname.lastname@example.org to learn more about this investigation or to discuss your options. For more information, you can also visit the investigation page on our website, lowey.com/securities.