Maloney and Severe v. Ollie’s Bargain Outlet Holdings, Inc., et al.
Bernstein Liebhard is co-lead counsel representing the plaintiff class in a securities class action entitled Maloney and Severe v. Ollie’s Bargain Outlet Holdings, Inc., et al., No. 1:19-cv-08647-JPO (S.D.N.Y.). The complaint alleges that defendants knowingly misrepresented and concealed material facts about the expansion strategy, supply chain, quality of existing inventory, and prospects of the Ollie’s Bargain Outlets (“Ollie’s” or the “Company”) discount chain. Though defendants assured investors that Ollie’s was “locked and loaded” with inventory for 2019, that the inventory “pipeline is full,” and that the Company’s deal flow was so strong that “we can very easily support our expansion efforts”, it would later emerge that Ollie’s was in fact suffering from significant supply chain inventory issues, as well as a glut of low-margin inventory, since at least 1Q2019. Once the market learned of these supply chain and inventory issues, Ollie’s shares plummeted almost 30%, injuring investors. The action is currently pending.