Key Takeaways:
Law firms have launched an investigation into Badger Meter Inc. for potential securities fraud after three significant stock-price drops since July 2025 erased 44% of the company's value.
The investigation, announced by firms including Bleichmar Fonti & Auld LLP and Kaplan Fox & Kilsheimer LLP, centers on whether the company made false and misleading statements to investors regarding demand for its water-meter products and its growth prospects.
The first drop occurred on July 22, 2025, when the stock fell 16.5% after the company warned of a sequential sales decline. It fell another 11% on Jan. 28, 2026, after reporting a 6% drop in utility water sales. The largest decline of 24% happened on April 17, 2026, after Badger Meter disclosed a 9% year-over-year decrease in total sales for the first quarter.
The probe could lead to a class-action lawsuit on behalf of investors who suffered losses. The series of disappointing results has called into question the company's previous representations about demand from its core municipal and regional water utility customers.
Badger Meter, a manufacturer of water meters and related products, saw its stock price fall from $245.22 on July 21, 2025, to $115.54 on April 17, 2026. The declines were directly linked to its financial reporting.
The July 2025 report for the second quarter showed slowing revenue growth and deteriorating margins. In January 2026, the company missed revenue expectations for its fourth-quarter and full-year 2025 results. The most recent report for the first quarter of 2026 continued the trend, with both earnings and revenue falling below analyst expectations.
The law firms are encouraging investors who lost money to come forward. Representation is being offered on a contingency fee basis, meaning shareholders would not be responsible for court costs.
This investigation places Badger Meter's management and its demand forecasting under scrutiny. The outcome could have significant financial and legal implications for the company, while investors watch for the potential formation of a class-action lawsuit.
This article is for informational purposes only and does not constitute investment advice.
