Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Party City Holdco Inc. (OTC: PRTYQ) securities between November 8, 2022 and June 9, 2023. Party City sells party goods, costumes, decorations, and related items through retail and wholesale channels, primarily in North America.
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What is this Case About: Party City Holdco Inc. (PRTYQ) Misled Investors About its Liquidity Needs
According to the complaint, during the class period, Defendants made or caused to be made misleading statements and omissions concerning the Company’s true 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) downplayed the nature and extent of the Company’s then-existing liquidity problems; (iv) omitted that the Company’s existing credit facilities were insufficient to satisfy its operational needs and that it was unable to obtain additional loans in the normal course of business; and (v) omitted that there was a material weakness in its internal control over financial reporting. As a result of these 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 corrective disclosures, the Company’s stock price declined, causing compensable damages to Plaintiff and the Class.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Party City Holdco Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by October 2, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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