Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of PriceSmart Inc., between October 26, 2017, and October 25, 2018. The lawsuit seeks to recover PriceSmart Inc.’s shareholders’ investment losses.
If you purchased shares of PriceSmart, Inc. between between October 26, 2017 and October 25, 2018, and would like to join the action, please click “Join Class Action” above.
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announced that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of PriceSmart, Inc. (“PriceSmart,” “PSMT” or the “Company”) (NASDAQ: PSMT) between October 26, 2017, and October 28, 2018, both dates inclusive (the “Class Period”). The lawsuit, filed in the United States District Court for the Southern District of California, seeks to recover damages for PriceSmart investors under the Securities Exchange Act of 1934.
According to the lawsuit, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s omni-channel business strategy had failed to reach key operating goals; (2) that the Company’s South America distribution strategy had failed to realize key cost saving goals; (3) that the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (4) that these investments had been improperly classified as cash and cash equivalents; (5) that the relevant corrections would materially impact financial statements; (6) that there was a material weakness in the Company’s internal controls over financial reporting; (7) that increasing competition negatively impacted the Company’s revenue and profitability; and (8) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. On August 1, 2018, before the market opened, the Company disclosed that it faced certain challenges with the launch of SINUVA, which had negatively impacted the Company’s second quarter 2018 financial results. On this news, the Company’s share price fell $6.30, nearly 20% to close at $26.05 per share on August 1, 2018.
On October 25, 2018, the Company disclosed poor operating results for the fourth quarter and year ended August 31, 2018. The Company also announced that its Chief Executive Officer had resigned, and also disclosed that certain financial statements would be restated to correct a balance sheet misclassification of certain assets.
On this news, PriceSmart’s share price fell $12.41, or more than 15%, to close at $69.16 on October 26, 2018, thereby injuring investors.
If you wish to serve as lead plaintiff in the PriceSmart class action, you must move the court no later than July 22, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information Matthew E. Guarnero
Bernstein Liebhard LLP https://www.bernlieb.com (877) 779-1414
SOURCE Bernstein Liebhard LLP