NEW YORK, May 17, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Dick’s Sporting Goods, Inc. (“Dick’s Sporting Goods” or the “Company”) (NYSE:DKS) in the United States District Court for the Southern District of New York on behalf of a class consisting of persons or entities who acquired Dick’s Sporting Goods stock on the open market from March 7, 2017 to May 15, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) the Company had overstated its adjusted EBITDA amounts; (ii) accordingly, the Company lacked effective internal controls; and (iii) as a result, the Company’s public statements were materially false and misleading.
On May 12, 2017, Dick’s Sporting Goods filed a Form 8-K/A with the Securities and Exchange Commission disclosing that a “computation error resulted in a $23.4 million overstatement of Adjusted EBITDA amounts for both the 13 weeks and 52 weeks ended January 28, 2017.” Then on May 16, 2017, Dick’s Sporting Goods announced that sales at its existing stores in the first quarter of 2016 had fallen short of forecasts and advised investors that the Company planned to scale back new store openings in 2018 and 2019. On this news, Dick’s Sporting Good's share price fell from $47.57 per share on May 15, 2017 to a closing price of $41.04 on May 16, 2017.
If you wish to serve as lead plaintiff, you must move the Court no later than July 17, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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