World News: 13:55 GMT Tuesday 28th May 2019. [Kehoe Law Firm via Globe Newswire via SPi World News]
PHILADELPHIA, May 28, 2019 (GLOBE NEWSWIRE) -- Kehoe Law Firm, P.C. announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of PriceSmart, Inc. ("PriceSmart" or the "Company") () between October 26, 2017 and October 25, 2018, inclusive (the "Class Period").
The lawsuit, filed in the United States District Court for the Southern District of California, seeks to recover damages for PriceSmart investors under the Securities Exchange Act of 1934.
On October 25, 2018, the Company disclosed that it would have to restate certain financial statements to correct a balance sheet misclassification of certain assets. PriceSmart also disclosed poor operating results for the fourth quarter and year ended August 31, 2018, and that its Chief Executive Officer had resigned.
According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose material adverse facts about PriceSmart’s business, operations, and prospects. Specifically, the complaint alleges that (1) PriceSmart’s omni-channel business strategy had failed to reach key operating goals; (2) the Company's South America distribution strategy had failed to realize key cost saving goals; (3) the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (4) said investments had been improperly classified as cash and cash equivalents; (5) the relevant corrections would materially impact financial statements; (6) there was a material weakness in PriceSmart’s internal controls over financial reporting; (7) increasing competition negatively impacted the Company's revenue and profitability; and (8) as a result, PriceSmart’s public statements were materially false and misleading at all relevant times.
Please note that no class has been certified in the above action, and until a class is certified, you are not represented by counsel unless you retain an attorney of your choice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
This notice may constitute attorney advertising.
Globe Newswire: 13:55 GMT Tuesday 28th May 2019
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