NEW YORK, NY / ACCESSWIRE / June 2, 2020 / Pomerantz LLP announces that a class action lawsuit has been filed against Bed Bath & Beyond Inc. ("Bed Bath & Beyond" or the "Company") (NASDAQ:BBBY) and certain of its officers. The class action, filed in United States District Court for the District of New Jersey, and indexed under 20-cv-05339, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise, acquired Bed Bath & Beyond securities between October 2, 2019, and February 11, 2020, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Bed Bath & Beyond securities during the class period, you have until June 15, 2020, 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. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Bed Bath & Beyond is a retailer that sells a wide variety of domestics merchandise and home furnishings. It operates under many brand names, including Christmas Tree Shops, Harmon, buybuy BABY, and Cost Plus World Market.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) due to "aggressive disposition of inventory," the Company lacked sufficient inventory in key categories to support holiday sales; (ii) the Company's internal control over inventory levels and financial reporting were not effective; (iii) as a result of the foregoing, the Company was likely to experience reduced sales; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
On January 8, 2020, Bed Bath & Beyond withdrew its fiscal 2019 guidance, citing pressures on sales and profitability, as well as a new strategic plan for the Company's operations.
On this news, the Company's stock price fell $3.20 per share, or over 19%, to close at $13.4 per share on January 9, 2020, thereby injuring investors.
Then, on February 11, 2020, Bed Bath & Beyond issued a press release announcing preliminary fourth-quarter 2019 financial results. Therein, the Company disclosed "a 5.4% decline in comparable sales driven primarily by store traffic declines combined with inventory management issues," including that "inventory within certain key categories in the Bed Bath & Beyond assortment was too low or out-of-stock during the period."
On this news, the Company's stock price fell $3.06 per share, or over 20%, to close at $11.79 per share on February 12, 2020, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, 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 80 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
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