New York, New York--(Newsfile Corp. - June 13, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Bed Bath & Beyond, Inc. (NASDAQ: BBBY) ("Bed Bath & Beyond" or the "Company") of the June 15, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Bed Bath & Beyond stock or options between October 2, 2019 and February 11, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/BBBY. There is no cost or obligation to you.
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Bed Bath & Beyond securities between October 2, 2019 and February 11, 2020 (the "Class Period"). The case, Vitiello et al v. Bed Bath & Beyond Inc. et al., No. 2:20-cv-04240 was filed on April 14, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) that, due to "aggressive disposition of inventory," the Company lacked sufficient inventory in key categories to support holiday sales; (2) that the Company's internal control over inventory levels and financial reporting was not effective; (3) that, as a result of the foregoing, the Company was likely to experience reduced sales; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On January 8, 2020, Bed Bath & Beyond withdrew its fiscal 2019 guidance, purportedly due to 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 from $16.65 per share on January 8, 2020 to $13.45 per share on January 9, 2020: a $3.20 or 19.22% drop.
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 from $14.85 per share on February 11, 2020 to $11.79 per share on February 12, 2020: a $3.06 or 20.61% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Bed Bath & Beyond's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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