Key Takeaways:
Bleichmar Fonti & Auld LLP opened a securities fraud investigation into Badger Meter Inc. after its stock plunged 24% on Apr. 17, the third double-digit decline in nine months.
"Badger Meter made false and misleading statements to investors regarding demand for its products and its prospects for growth," the securities law firm said in a June 1 announcement.
The Milwaukee-based water meter manufacturer's stock fell $36.75 to $115.54 on Apr. 17 after reporting first-quarter 2026 earnings and revenue below expectations, with total sales declining 9% year over year. That followed a 16.5% drop on July 22, 2025, when the company missed second-quarter estimates and warned of a sequential sales decline, and an 11% decline on Jan. 28, 2026, after fourth-quarter revenue missed consensus by about $11.3 million and utility water sales fell 6%.
The investigation centers on whether Badger Meter misrepresented demand trends to investors. The company's core customer base consists primarily of municipal and regional water utilities, and its growth trajectory has relied heavily on large Advanced Metering Infrastructure project deployments. The stock has fallen roughly 55% from its 52-week high of $256.08.
The probe adds legal risk to a stock already under pressure from slowing growth and a premium valuation. Investors who held shares during the investigation period may have legal options to recover losses. The firm is representing shareholders on a contingency fee basis.
This article is for informational purposes only and does not constitute investment advice.
