LOS ANGELES–(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;–Glancy
Prongay & Murray LLP (“GPM”) announces that it has filed a class
action lawsuit in the United States District Court for the Southern
District of California, captioned Harari v. PriceSmart, Inc. et al.,
on behalf of persons and entities that purchased or otherwise acquired
PriceSmart, Inc. (NASDAQ: PSMT)
(“PriceSmart” or the “Company”) securities between October 26, 2017
and October 25, 2018, inclusive (the “Class Period”). Plaintiff
pursues claims under Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days from the date of
this notice to move the Court to serve as lead plaintiff in this
action.
If you are a shareholder who suffered a loss, click here
to participate.
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.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased PriceSmart securities during the Class Period, you may
move the Court no later than 60 days from the date of this notice to
ask the Court to appoint you as lead plaintiff. To be a member of the
Class 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. If you wish to learn more about this action, or if you have any
questions concerning this announcement or your rights or interests with
respect to these matters, please contact Lesley Portnoy, Esquire, of
GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067
at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected],
or visit our website at www.glancylaw.com.
If you inquire by email please include your mailing address, telephone
number and number of shares purchased.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy,
310-201-9150 or 888-773-9224
www.glancylaw.com
[email protected]
