NEW YORK, Nov. 23, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in StoneMor Partners L.P. (“StoneMor” or the “Company”) (NYSE:STON) of the January 20, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of all those who purchased StoneMor stock or options between January 19, 2012 and October 27, 2016 (the “Class Period”). The case, ANDERSON v. STONEMOR PARTNERS, L.P. et al, No. 16-cv-06111 was filed on November 23, 2016, and has been assigned to Judge Eduardo Robreno.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making and providing financial statements based on misleading non-GAAP financial presentations in order to falsely mislead investors into purchasing the Company's equity units.
First, on October 27, 2016, StoneMor was forced to materially cut its distribution in half since no new capital had been infused into the Company. This came after an announcement on September 2, 2016, in which the Company stated that it would have to correct various errors in its financial statements due to using potentially financially misleading metrics.
After the announcement, StoneMor’s share price fell from $24.82 per share on October 27, 2016 to a closing price of $13.74 on October 28, 2016—a $11.08 or a 44.6% drop.
Then, on November 9, 2016, StoneMor filed a Form 8-K with the Securities and Exchange Commission (“SEC”) announcing that it would have to amend its “Form 10-K for [the] fiscal year ended December 31, 2015, and its Forms 10-Q for the quarterly periods ended June 30, 2016 and March 31, 2016.” As a reason for the amendments, the Company cited the SEC’s review which required the Company to discontinue the use of non-GAAP measures, such as Adjusted EBITDA, as performance metrics in its financial statements.
After the announcement, StoneMor’s share price fell from $9.03 per share on November 8, 2016 to a closing price of $8.57 on November 9, 2016 —a $0.46 or a 5.1% drop.
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Take Action
If you invested in StoneMor stock or options between January 19, 2012 and October 27, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/STON. 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 StoneMor’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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