Johnson Fistel, LLP Files Class Action Suit against Wayfair Inc., Lead Plaintiff Deadline March 11, 2019

Johnson Fistel, LLP Files Class Action Suit against Wayfair Inc., Lead Plaintiff Deadline March 11, 2019

PR Newswire

SAN DIEGO, March 2, 2019 /PRNewswire/ -- Johnson Fistel, LLP announces that it has filed a class action on behalf of purchasers of Wayfair Inc. (NYSE: W) Class A common stock during the period between August 2, 2018 and October 31, 2018 (the "Class Period").   

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Wayfair Class A common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation.  The lead plaintiff can select a law firm of its choice.  An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff, you must move the Court no later than March 11, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number. Additionally, you can [click here to join this action]. There is no cost or obligation to you.

The complaint charges Wayfair and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Wayfair is an online purveyor of household retail goods.  The Company offers approximately 10 million products for the home sector under various brands.

The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Wayfair's business and prospects, including that Wayfair had been experiencing significantly diminished demand for its online product offerings and had significantly increased advertising spending to grow sales. As a result of defendants' false statements and/or omissions, the price of Wayfair stock was artificially inflated to more than $149 per share during the Class Period.  Meanwhile, with the price of Wayfair common stock artificially inflated, certain of its senior executives and directors cashed in, selling more than $87.75 million worth of their personally held shares.

Then, on November 1, 2018, before the open of trading, Wayfair issued a press release announcing its third quarter 2018 financial results. The Company reported a massive $151.7 million GAAP net loss for the quarter, or $(1.69) per share, compared with a GAAP loss of $76.4 million, or $(0.88) per share, for the third quarter of 2017.  In reality, advertising expenses had skyrocketed in the third quarter to more than $202.5 million, an increase of 43%.  Following this news, the price of Wayfair common stock declined, falling more than $14 per share, or nearly 13%, to close at $96.16 per share on November 1, 2018.

Plaintiff seeks to recover damages on behalf of all purchasers of Wayfair Class A common stock during the Class Period between August 2, 2018 and October 31, 2018. There is no cost or obligation to you.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com

 

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SOURCE Johnson Fistel, LLP

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