Deadline Reminder: The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against PriceSmart, Inc.

Published

on

Reading Time: 2 minutes

BENSALEM, Pa.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24PSMT&src=ctag” target=”_blank”gt;$PSMTlt;/agt; lt;a href=”https://twitter.com/hashtag/classaction?src=hash” target=”_blank”gt;#classactionlt;/agt;–Law Offices of Howard G. Smith reminds investors of the upcoming July
22, 2019 
deadline to file a lead plaintiff motion in the class
action 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”).

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 howardsmith@howardsmithlaw.com.

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.

Advertisement

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 during the Class Period you may
move the Court no later than July 22, 2019 to ask the
Court to appoint you as lead plaintiff if you meet certain legal
requirements. To be a member of the class action you need not take any
action at this time; you may retain counsel of your choice or take no
action and remain an absent member of the class action. If you wish
to learn more about this class action, or if you 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 howardsmith@howardsmithlaw.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.

Contacts

Advertisement

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com

Trending on Grassnews

Exit mobile version