NEW YORK, NY / ACCESSWIRE / September 3, 2015 / Pomerantz LLP announces that a class action lawsuit has been filed against Wayfair, Inc. ("Wayfair" or the "Company")(NYSE: W) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-06985, is on behalf of a class consisting of all persons or entities who purchased Wayfair securities between October 2, 2014 and August 31, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Wayfair securities during the Class Period, you have until November 2, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Wayfair is purportedly one of the world's largest online destinations for home furnishings and decor. Through its e-commerce business model, the Company offers over seven million products from over 7,000 suppliers across five distinct brands: Wayfair.com, Joss & Main, AllModern, DwellStudio and Birch Lane.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Overstock.com is a competitor; and (ii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On August 31, 2015, Citron Research published a report entitled "Wayfair is the Most Mispriced Stock Citron Research Has Seen in Years." The Citron report stated, in part, that: (1) Wayfair had deliberately refused to acknowledge Overstock as a competitor in its SEC filings, despite the similarities between the two companies, because "if they acknowledge Overstock as a comp, it becomes apparent to all that Wayfair's stock is not worth more than $10 a share"; and (2) Wayfair's CEO Niraj Shah described the company as profitable "for the first nine years of this business" in an August 13, 2015 interview, when the company, per its S-1 filing, had $190 million in cumulative losses before going public, "and the number has done nothing but escalate."
On this news, Wayfair stock has fallen as much as 4.52, or 10.7%, on intraday trading on August 31, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP