February 12, 2015
Bernstein Liebhard LLP today announced that it is investigating possible claims against Pier 1 Imports, Inc. (“Pier 1” or the “Company”) (NYSE: PIR). The investigation concerns whether Pier 1 and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On February 10, 2015, the Company radically reduced its financial guidance for the fiscal year ending February 28, 2015 (“FY15”). Pier 1 had repeatedly trumpeted FY15 guidance of $.95 to $1.05 per share. On February 10th, approximately three weeks before the end of FY15, Pier 1 slashed its FY15 guidance almost 20% to $.80 to $.83 per share. Pier 1 blamed the sudden change in outlook on softer than expected sales in January and February and “unplanned” expenses, primarily related to incremental supply chain costs. Tellingly, Pier 1 also announced that the Company’s Chief Financial Officer Charles H. Turner – a 23 year veteran with the Company – had “retired”.
On this news, shares of Pier 1 plummeted $5.28 per share to $11.69, or more than 30%, in after-hours trading on February 10, 2015.
TheStreet’s Jim Cramer stated that he has backed Pier 1 since it was trading at pennies, but that there was something wrong there now because “this does not add up”. Cramer explained that a stock does not go down five dollars and a CFO does not leave unless there is a bigger story than weak comparable-store numbers.
If you lost money in Pier 1, or are interested in discussing your rights as a Pier 1 shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
