NEW YORK, Oct. 30, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), FarFetch Limited (NYSE: FTCH), Eldorado Resorts, Inc. (NASDAQ: ERI), and Sundial Growers, Inc. (NASDAQ: SNDL). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI)
Class Period: June 6, 2019 to August 28, 2019
Lead Plaintiff Deadline: November 18, 2019
On August 28, 2019, Ollie’s reported that store sales decreased 1.7% during the second quarter of 2019. Further, Ollie’s disclosed that a “bottleneck issue” had existed in its supply chain “for most all of Q2” and was not corrected until “the last week of the quarter.”
On this news, shares of Ollie’s fell $21.41 per share, or over 27%, to close at $56.36 per share on August 29, 2019.
The complaint, filed on September 17, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that the company suffered a supply chain issue that impacted the initial inventory available at new stores; (2) that, as a result, the company lacked sufficient inventory to meet demand at certain store locations; (3) that, as a result, the company’s comparable store sales were likely to decrease quarter-over-quarter; and (4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
For more information on the Ollie’s class action go to: https://bespc.com/olli
FarFetch Limited (NYSE: FTCH)
Class Period: Securities purchased between September 21, 2018 and August 8, 2019 or pursuant to and/or traceable to the company’s September 2018 initial public offering (“IPO”).
Lead Plaintiff Deadline: November 18, 2019
The complaint, filed September 19, 2019, alleges that in the IPO registration statement and throughout the Class Period, defendants failed to disclose material adverse facts about the company’s operations and prospects. Specifically, defendants failed to disclose that: (1) the company would refuse to reduce merchandise prices to match the rest of the market; (2) this sub-optimal pricing strategy rendered the company’s platform highly susceptible to underpricing by competitors, despite what defendants touted as a “superior” platform; and (3) as a result, the company’s past and projected growth rates were foreseeably unsustainable. As a result of the foregoing, defendants’ statements about the company’s business strategy and growth prospects lacked a reasonable basis at all relevant times.
On or about September 24, 2018, Farfetch held its IPO in which it sold approximately 50 million shares of Class A common stock at a price of $20.00 per share.
On August 8, 2019, Farfetch reported a larger-than-expected loss of $89.6 million for second quarter 2019. The company also announced a $675 million acquisition of New Guards Group and that its Chief Operating Officer had resigned.
On this news, the company’s share price fell $8.12, or over 44%, to close at $10.13 per share on August 9, 2019. By the date this complaint was filed, the company’s stock was trading as low as $10.20 per share, a nearly 50% decline from the $20 IPO price.
For more information on the FarFetch class action go to: https://bespc.com/ftch
Eldorado Resorts, Inc. (NASDAQ: ERI)
Class Period: March 1, 2019 to September 2, 2019
Lead Plaintiff Deadline: November 22, 2019
On September 3, 2019, Eldorado revealed that CEO Tom Reeg, president and chief operating officer Anthony Carano, executive chairman Gary Carano, and director James Hawkins had received subpoenas in May pertaining to an ongoing investigation of the executives trading in an undisclosed company tied to James Hawkins.
On this news, Eldorado’s share price fell $3.09, or over 8%, to close at $35.42 on September 3, 2019.
The complaint, filed on September 23, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) several of the company’s executive officers, including CEO Thomas Reeg, engaged in improper trading with respect to the securities of another publicly-traded company; and (2) as a result, defendants’ statements about Eldorado’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Eldorado class action go to: https://bespc.com/eri
Sundial Growers, Inc. (NASDAQ: SNDL)
Class Period: Securities purchased pursuant to and/or traceable to the company’s August 1, 2019 initial public offering (“IPO”).
Lead plaintiff deadline: November 25, 2019
On August 1, 2019, Sundial closed its initial public offering (“IPO”), in which it sold 11 million shares at $13.00 per share, yielding $143 million in proceeds. In the Registration Statement for the IPO, the company stated that it produces “high-quality, consistent cannabis.”
On August 14, 2019, cannabis producer Zenabis Global Inc. (“Zenabis”) revealed that “[c]ertain third-party producers failed to supply saleable cannabis in line with contractual obligations. Due to quality issues, Zenabis had to return or reject a total of 554 kg of cannabis from a third-party.”
On August 19, 2019, MarketWatch published an article stating that Sundial had sold the cannabis to Zenabis. The article also stated that the cannabis was returned “because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter.”
On this same day, the company confirmed that it was resolving an “isolated immaterial matter between Sundial and [a] Licensed Producer.”
The complaint, filed on September 25, 2019, alleges that in the IPO and afterwards defendants made false and/or misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) as a result, defendants’ statements about Sundial’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Sundial’s stock is currently trading at $4.66 per share, a 64% decrease from the $13.00 IPO price.
For more information on the Sundial class action, go to: https://bespc.com/sndl
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com