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NEW YORK, May 23, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ:PSMT) of the July 22, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in PriceSmart stock or options between October 26, 2017 and October 25, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/PSMT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of all those who purchased PriceSmart securities between October 26, 2017 and October 25, 2018 (the "Class Period"). The case, Harari v. PriceSmart, Inc. et al, No. 19-cv-00958 was filed on May 22, 2019, and has been assigned to Judge Jeffrey T. Miller.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: 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.
Specifically, 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 from $81.57 per share on October 25, 2018 to a closing price of $69.16 on October 26, 2018: a $12.41 or a 15.21% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding PriceSmart's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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