Robbins Arroyo LLP: Wayfair Inc. (W) Sued for Misleading Investors

Jan 15, 2019 12:39 pm
SAN DIEGO & BOSTON -- 

Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Wayfair Inc. (NYSE: W) filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between August 2, 2018 and October 31, 2018. Wayfair engages in the e-commerce business in the United States, Europe, and internationally.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/wayfair-inc-jan-2019/

Wayfair Accused of Failing to Disclose Diminished Demand for Its Products

According to the complaint, in a scheme to defraud investors, Wayfair represented that the company's market share was growing and that it had an increasing base of repeat customers. To the contrary, Wayfair had been experiencing significantly diminished demand for its online product offerings and had substantially increased advertising spending to grow sales. On November 1, 2018, Wayfair reported a massive $151.7 million net loss for the quarter under Generally Accepted Accounting Principles – nearly two times greater than its net loss for 3Q17 – meaning its U.S. business was not profitable in 3Q18. Wayfair also disclosed that its U.S. business would post a loss in 4Q18. On this news, Wayfair declined more than 13%, closing at $96.16 per share on November 1, 2018, and continues to decline.

Wayfair Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

Leonid Kandinov
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
LKandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com