INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against PriceSmart, Inc.
NEW YORK--(BUSINESS WIRE)--May 23, 2019--
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of those who acquired PriceSmart, Inc. (“PriceSmart” or the “Company”) (NASDAQ: PSMT ) securities during the period from October 26, 2017 through October 25, 2019 (the “Class Period”). Investors have until July 22, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that PriceSmart made materially false and misleading statements and/or failed to disclose that: (i) the Company’s omni-channel business strategy had failed to reach key operating goals; (ii) the Company’s South America distribution strategy had failed to realize key cost saving goals; (iii) the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (iv) these investments had been improperly classified as cash and cash equivalents; (v) the relevant corrections would materially impact financial statements; (vi) there was a material weakness in the Company’s internal controls over financial reporting; and (vii) increasing competition negatively impacted the Company’s revenue and profitability.
On October 25, 2018, PriceSmart filed a Form 8-K disclosing the discovery of “a balance sheet misclassification … involving the Company’s presentation of short-term investments as cash and cash equivalents.” As a result of the misclassification, the Company announced that certain financial statements would need to be restated and that it “expects to include in its Form 10-K a conclusion that there was a material weakness in internal controls over financial accounting related to this misclassification.” On this news, the price of PriceSmart shares fell $12.41, approximately 15%, to close at $69.16 on October 26, 2018.
If you acquired PriceSmart securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.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/20190523005843/en/
CONTACT: Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Kirby McInerney LLP
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PUB: 05/23/2019 08:00 PM/DISC: 05/23/2019 08:00 PM