The Law Offices of Frank R. Cruz continues its investigation of The Lovesac Company (“Lovesac” or the “Company”) (NASDAQ: LOVE) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On August 16, 2023, Lovesac disclosed that it identified “certain errors with the methodology used by the Company to calculate the accrual of its last mile freight expenses applicable to the Company’s financial statements for the fiscal year ended January 29, 2023 and the thirteen weeks ended April 30, 2023.” The Company further disclosed that “as a result of the identified errors related to last mile freight expenses, the Company believes that previously reported operating income and net income were overstated by approximately $1.5 million to $2.5 million and $1.0 million to $2.0 million, respectively, for fiscal year 2023.” As a result, Lovesac disclosed that it needed to restate certain previously-issued financial statements.
On this news, the Company’s share price fell $0.70, or 2.9%, to close at $23.06 per share on August 17, 2023, thereby injuring investors.
Then on September 8, 2023, Lovesac filed a Notice of Late Filing disclosing that “the Company was not able to finalize the financial statements and related information for inclusion in its quarterly report on Form 10-Q for the quarter ended July 30, 2023” and that Lovesac “does not expect to be in a position to file the Form 10-Q within five calendar days following the prescribed due date.”
On this news, the Company’s stock price declined during after-hours trading
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If you purchased Lovesac securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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