NEW YORK, April 29, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in La Quinta Holdings Inc. (“La Quinta” or the “Company”) (NYSE:LQ) of the June 24, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company, certain officers and directors, and entities related to the Company’s secondary public offering (the “SPO”).
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased or acquired La Quinta’s common stock between February 25, 2015 and September 17, 2015 (the “Class Period”) or pursuant to the Company’s SPO on or about March 24, 2015. The case, Beisel v. La Quinta Holdings Inc. et al, No. 1:16-cv-03068, was filed on April 25, 2016, and has been assigned to Judge Alison J. Nathan.
The lawsuit focuses on whether the Company and certain directors and officers violated federal securities laws by failing to disclose materially adverse facts about the Company’s true financial condition, business and prospects in its Registration Statement and Prospectus issued in connection with the SPO. These alleged facts include the declining customer demand and market share in the Company’s key Texas market due to the need of major restoration of some facilities as well as continuous disruptions caused by the transitioning of its call center.
Specifically, on July 29, 2015, La Quinta reported financial results for the second quarter of 2015 revealing unfavorable earnings affected by a $4 million loss on the sale of a property and an approximate $42 million impairment charge associated with the potential sale of 24 Company-owned hotels. On this news, the stock closing price fell from $22.13 per share on July 29, 2015 to a closing price of $21.35 on July 30, 2015, which counted for about a 3.5% drop in price.
Then, during post-market hours on September 17, 2015, La Quinta’s Board of Directors announced that Mr. Wayne Goldberg had stepped down from his leadership positions. The Company also reduced its 2015 revenue guidance following the weaker-than-expected demand in August and September. On this news, the share price fell more than 15% from September 17 to 18, 2015.
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Take Action
If you invested in La Quinta common stock between February 25, 2015 and September 17, 2015 or pursuant to the SPO and would like to discuss your legal rights, visit www.faruqilaw.com/LQ. 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 rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding La Quinta’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that 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 of whether or not to serve as a lead plaintiff.
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