Philadelphia, Pennsylvania--(Newsfile Corp. - July 27, 2023) - Grabar Law Office is investigating claims on behalf of shareholders who purchased Party City Holdco Inc. shares between November 8, 2022 and June 9, 2023 (NYSE: PRTY) (OTC: PRTYQ).
On November 8, 2022, Party City filed its Form 10-Q with the SEC for the third quarter ended September 30, 2022. From that point, through June 9, 2023, when Ernst & Young LLP ("E&Y") resigned as the Company's auditor due to a disagreement about the Company's decision not to include a "going concern" warning in the Q3 2022 10-Q, we believe that Defendants made or caused to be made misleading statements and omissions concerning the Company's financial strength. Specifically, in the Q3 2022 10-Q, the Company: (i) affirmatively misrepresented that its capital resources "will be adequate to meet our liquidity needs for at least the next 12 months"; (ii) omitted that there was substantial doubt about the Company's ability to continue as a going concern; (iii) omitted that the Company was experiencing significant liquidity challenges; (iv) omitted that the Company's existing credit facilities were insufficient to satisfy its operations and that it was unable to obtain additional loans in the normal course of business; and (v) omitted that there were material weaknesses in its internal controls over financial reporting.
As a result of these alleged misleading statements and omissions, the Company's stock price was artificially inflated throughout the Class Period. When the truth was revealed through a series of partial corrective disclosures, the Company's stock price declined, causing compensable damages to shareholders.
If you purchased Party City shares between November 8, 2022 and June 9, 2023, and would like to learn more about this matter, you are encouraged to visit https://grabarlaw.com/the-latest/party-city-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.
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Contact:
Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: jgrabar@grabarlaw.com
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