INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of PriceSmart, Inc. Investors (PSMT)
BENSALEM, Pa.--(BUSINESS WIRE)--May 23, 2019--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased PriceSmart, Inc. (“PriceSmart” or the “Company”) (NASDAQ: PSMT ) securities between October 26, 2017 and October 25, 2018, inclusive (the “Class Period”). PriceSmart investors have until July 22, 2019 to file a lead plaintiff motion.
Investors suffering losses on their PriceSmart investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
The complaint filed in this class action alleges that 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.
If you purchased shares of PriceSmart, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190523005707/en/
CONTACT: Law Offices of Howard G. Smith
Howard G. Smith, Esquire
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Law Offices of Howard G. Smith
Copyright Business Wire 2019.
PUB: 05/23/2019 02:17 PM/DISC: 05/23/2019 02:17 PM