Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Wayfair Inc.
NEW YORK--(BUSINESS WIRE)--Jan 10, 2019--Robbins Geller Rudman & Dowd LLP ( http://www.rgrdlaw.com/cases/wayfair/ ) today announced that a class action has been commenced on behalf of purchasers of Wayfair Inc. (NYSE:W) Class A common stock during the period between August 2, 2018 and October 31, 2018 (the “Class Period”). This action was filed in the District of Massachusetts and is captioned Goodstein v. Wayfair Inc., et al., No. 19-cv-10062.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Wayfair Class A common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Mary K. Blasy of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/wayfair/.
The complaint charges Wayfair and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Wayfair is an online purveyor of household retail goods. The Company offers approximately 10 million products for the home sector under various brands.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Wayfair’s business and prospects, including that Wayfair had been experiencing significantly diminished demand for its online product offerings and had significantly increased advertising spending to grow sales. As a result of defendants’ false statements and/or omissions, the price of Wayfair stock was artificially inflated to more than $149 per share during the Class Period. Meanwhile, with the price of Wayfair common stock artificially inflated, certain of its senior executives and directors cashed in, selling more than $87.75 million worth of their personally held shares.
Then, on November 1, 2018, before the open of trading, Wayfair issued a press release announcing its third quarter 2018 financial results. The Company reported a massive $151.7 million GAAP net loss for the quarter, or $(1.69) per share, compared with a GAAP loss of $76.4 million, or $(0.88) per share, for the third quarter of 2017. In reality, advertising expenses had skyrocketed in the third quarter to more than $202.5 million, an increase of 43%. On this news, the price of Wayfair common stock declined precipitously, falling more than $14 per share, or nearly 13%, to close at $96.16 per share on November 1, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Wayfair Class A common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
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CONTACT: Robbins Geller Rudman & Dowd LLP
Mary K. Blasy, 800-449-4900
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Geller Rudman & Dowd LLP
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PUB: 01/10/2019 10:00 PM/DISC: 01/10/2019 10:00 PM