SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Dollarama, Inc. - DLMAF
NEW YORK, Nov. 09, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Dollarama, Inc. (“Dollarama” or the “Company”) (OTCMKTS: DLMAF). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Dollarama and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 31, 2018, Spruce Point Capital Management (“Spruce Point”) published a report entitled “Hard To Bargain For A Higher Price”. The Spruce Point report highlighted purportedly “[q]uestionable accounting and governance practices [that] cast doubt on management and the underlying health of the business”. Specifically, the report asserted that “[t]he Rossy family’s tight control over management has led to the appearance of nepotism [and] questionable related-party real estate transactions”; that Dollarama’s executive compensation structure “encourag[es] aggressive accounting and inefficient capital allocation that flatters the income statement”; and that “[m]anagement appears to use aggressive FX hedges and an off-balance-sheet relationship with a Central American retail affiliate to boost margins in a non-transparent way.”
Following publication of the Spruce Point report, Dollarama’s stock price fell $1.81 per share, or 6.21%, in intraday trading, on October 31, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.