In 2014, Acuity Brands entered into a deal with the Decide DeKalb Development Authority in DeKalb County, Georgia, involving a $9.5 million corporate jet. Under this arrangement, the development authority purchased the jet from Acuity Brands and leased it back to the company. This transaction was part of a broader economic incentive package aimed at encouraging Acuity Brands to expand its local facility, with commitments to create 250 jobs and invest over $34 million in DeKalb County.
The deal has drawn scrutiny due to concerns about oversight and transparency. The Decide DeKalb Development Authority does not consistently track whether companies receiving such incentives fulfill their job creation and investment promises. Unlike similar authorities in other counties, DeKalb does not require annual reporting for projects that do not involve multi-family housing, making it difficult to verify compliance12.
Acuity Brands has stated that taxpayers did not pay for the purchase or operation of the company airplane and that the company has fulfilled its obligations, claiming to have created more than 300 jobs since the start of the incentive program12. The primary controversy centers on governance and oversight rather than direct misuse of taxpayer funds.
Lawsuits Against Acuity Brands: Fraud, Misrepresentation, and Related Issues
Acuity Brands has faced several significant legal actions in recent years:
1. Securities Fraud and Misrepresentation Class Action (2018–2021)
- A class action lawsuit was filed in 2018 alleging that from October 7, 2015, to April 3, 2017, Acuity Brands and certain executives made misrepresentations and failed to disclose key information about the company’s ability to sustain its sales growth. Plaintiffs claimed these actions artificially inflated Acuity’s stock price, which then dropped when the alleged truth emerged45.
- In December 2021, Acuity Brands agreed to settle the lawsuit for $15.75 million, with no admission of wrongdoing. The settlement covered all claims of the class action and was intended to resolve allegations of securities fraud and misleading statements to shareholders4.
2. Data Breach Class Action (2023)
- In January 2023, a class action lawsuit was filed against Acuity Brands following a December 2021 data breach that exposed the personal information of approximately 37,000 current and former employees. The suit alleges that Acuity failed to implement adequate cybersecurity measures and did not promptly inform affected individuals, thereby increasing the risk of identity theft and financial fraud3.
- The lawsuit seeks to represent all individuals whose data was compromised and claims that Acuity’s negligence led to the breach and its consequences3.
3. Ongoing Investigations
- Law firms have periodically announced investigations into Acuity Brands for potential breaches of fiduciary duty and securities law violations, particularly relating to the same period and issues as the above class action. These investigations typically focus on whether company officers misled investors or failed in their corporate governance responsibilities5.
Summary Table: Major Legal Actions Involving Acuity Brands
| Issue | Nature of Allegation | Resolution/Status |
|---|---|---|
| Private Jet Deal | Economic incentive, oversight issues | No legal action; governance concerns12 |
| Securities Fraud (2015–17) | Misrepresentation to shareholders | $15.75 million settlement, no admission of wrongdoing45 |
| Data Breach (2021) | Failure to protect employee data | Class action filed, ongoing3 |
Conclusion
Acuity Brands’ private jet deal with DeKalb County was part of a broader economic incentive program, not a direct taxpayer-funded purchase, though it has raised questions about oversight and transparency12. The company has faced lawsuits for securities fraud and data protection failures, resulting in a major settlement and ongoing litigation, but there is no public record of criminal fraud or misrepresentation charges beyond these civil actions345.
Citations:
- https://www.wsbtv.com/news/2-investigates/taxpayers-dekalb-county-paying-big-companys-multi-million-dollar-private-jet/EYRHV4BYO5BWFIFA5YJRW2PUWA/
- https://inside.lighting/news/23-09/tv-news-report-dissects-acuity-brands-private-jet-deal
- https://www.classaction.org/news/acuity-brands-hit-with-class-action-over-2021-data-breach
- https://inside.lighting/news/21-12/acuity-brands-agrees-1575-million-settlement
- https://www.accessnewswire.com/newsroom/en/business-and-professional-services/kaskela-law-llc-announces-investigation-of-acuity-brands-inc-ayi-582601
- https://www.labaton.com/cases/in-re-acuity-brands-inc-securities-litigation
- https://acuityinternational.com
- https://www.investors.acuitybrands.com/static-files/86518e51-db7c-4eba-a42c-d566b02643c3
- https://www.investors.acuitybrands.com/static-files/0d72bfd5-2daf-46ef-928d-88ed2be6a49f
- https://www.usaspending.gov/award/CONT_AWD_19HK3019P0393_1900_-NONE-_-NONE-
- https://www.jetex.com/types-of-private-jets/
- https://investors.acuityinc.com/static-files/d0f3e60b-d6b7-4509-a6b3-67fe0353f506
- https://www.acuitybrands.com/-/media/abl/acuitybrands/files/support/customer-support/terms-and-conditions/archive/acuity-saas-agreement-5-17-23.pdf?forceBehavior=open
- https://www.linkedin.com/in/brad-b-225b4b101
- https://www.sec.gov/Archives/edgar/data/1144215/000114421524000112/def14a-courtesycopy.pdf
- https://www.doa.la.gov/doa/osp/agency-resources/featured-contracts/
- https://www.kslaw.com/news-and-insights/acuity-brands-secures-favorable-settlement-of-securities-class-action-and-dismissal-of-derivative-litigation
- https://www.strategicclaims.net/wp-content/uploads/2022/01/0055-10-05-2018-AMENDED-COMPLAINT-Consolidated-Amended-Class-Action-Complaint-for-Violation-of-the-Federal-Securitie2011452.1.pdf
- https://zlk.com/plsra-c/acuity-brands-inc
- https://www.law360.com/articles/998492/lighting-co-acuity-hid-negative-info-investors-claim
- https://www.acuitydatasettlement.com/faq
- https://law.justia.com/cases/federal/district-courts/wisconsin/wiedce/1:2012cv00091/58597/124/
- https://descrybe.ai/case-details/c8717224
- https://www.sec.gov/Archives/edgar/data/1144215/000114421518000110/ayi-20180831x10k.htm
- https://www.classaction.org/news/category/acuity-brands-inc
- https://www.classaction.org/media/smith-et-al-v-acuity-brands-inc.pdf
- https://acuitydatasettlement.com
- https://www.sec.gov/Archives/edgar/data/1144215/000114421516000287/ayi-2016831x10k.htm
- https://www.youtube.com/watch?v=qZcDcZkzeFc
- https://www.yahoo.com/news/taxpayers-dekalb-county-paying-big-220635645.html
- https://www.cbp.gov/newsroom/announcements/cbp-announces-additional-public-private-partnerships-reimbursable-services
- https://www.atlantaga.gov/Home/Components/News/News/14368/672?backlist=%2F
- https://www.acuitybrands.com/resources/trending-topics/buy-american
- https://www.linkedin.com/posts/inside-lighting_tv-news-report-dissects-acuity-brands-private-activity-7112456050129211392-cmN9
- https://www.techtarget.com/healthtechsecurity/news/366594300/Acuity-Agrees-to-Lawsuit-Settlement-After-100K-Impacted-Data-Breach
- https://www.accessnewswire.com/newsroom/en/business-and-professional-services/kaskela-law-llc-announces-investigation-of-acuity-brands-inc.-ayi-582601
- https://inside.lighting/news/23-01/acuity-brands-data-breach-leads-class-action-lawsuit
- https://www.businesswire.com/news/home/20180202005074/en/AYI-INVESTOR-ALERT-The-Law-Offices-of-Vincent-Wong-Reminds-Investors-of-an-Investigation-Involving-Possible-Securities-Fraud-Violations-by-the-Board-of-Directors-of-Acuity-Brands-Inc.
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