NEW YORK, Jan. 16, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Five Below, Inc. ("Five Below" or the "Company") (Nasdaq:FIVE) common stock during the period between June 5, 2014 and December 4, 2014 (the "Class Period").
If you purchased Five Below during the Class Period, you may, no later than March 10, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
If you want more information about the Five Below Shareholder Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com.
The complaint charges Five Below and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Five Below is a specialty discount retailer targeted at teens and pre-teens that prices all of its clothing and accessories at $5 or below.
The Complaint alleges that during the Class Period the Company concealed that its two founders intended to step down as CEO and Chairman. The Complaint also alleges that at the same time that the Company was concealing this material fact, it raised its fiscal 2014 sales and earnings guidance twice. With the Company's stock trading at inflated prices due to these alleged omissions and misrepresentations, both of the Company's founders and its CFO took advantage, and sold $30 million worth of their personally held shares at these fraud-inflated prices.
On December 4, 2014, the Company disclosed that its sales growth had slowed and that it was reducing its sales and profit forecasts. On the same day, the Company's two founders also announced their resignations as CEO and Chairman. Following this news, the price of the Company stock fell, closing at $37.61 down 21% from its Class Period high of $47.89.
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