Robbins Arroyo LLP: Qurate Retail Group, Inc. (QRTEA) Misled Shareholders According to a Recently Filed Class Action
SAN DIEGO & WEST CHESTER, Pa.--(BUSINESS WIRE)--Sep 11, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Qurate Retail Group, Inc. (NasdaqGS: QRTEA) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between August 5, 2015 and September 7, 2016. Qurate markets and sells various consumer products primarily through live merchandise-focused televised shopping programs, including QVC and HSN, websites, and mobile applications. Qurate offers a payment plan known as Easy Pay to its customers that allows them to pay for merchandise in installments.
View this information on the law firm’s Shareholder Rights Blog:
Qurate Accused of Misstating True Reasons for Sales Growth
According to the complaint, Qurate claimed that its broad-based marketing and higher personalized customer experience would spur revenue growth. However, Qurate was aggressively loosening the credit standards of its Easy Pay program to attract more customers and boost its sales growth. As a result, Qurate was exposed to a greater credit risk on Easy Pay receivables if a QVC customer did not remit payment, which would require Qurate to record a loss and write off the Easy Pay receivable. On August 5, 2016, Qurate disclosed sales declines, attributing its poor results to “aggressive markdown activity” by department stores and lowered QVC station viewership due to television coverage of the 2016 U.S. presidential election. On this news, Qurate’s stock fell over 21% that day. Then, on September 8, 2016, Qurate revealed that it expected to see “higher default rates” associated with its Easy Pay sales, causing its stock to drop further to close at $19.59 per share that day.
Qurate Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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CONTACT: Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 09/11/2018 03:33 PM/DISC: 09/11/2018 03:33 PM