Boston, Massachusetts--(Newsfile Corp. - July 8, 2020) - Thornton Law Firm LLP alerts investors that a class action lawsuit has been filed on behalf of shareholders of Casper Sleep, Inc. (NYSE: CSPR). Investors who purchased CSPR securities in the Company's initial public offering, and are interested in learning more about the case and the lead plaintiff process, are encouraged to visit https://www.tenlaw.com/cases/CSPR. Investors may also contact Thornton Law Firm at firstname.lastname@example.org, or call 617-531-3917. Investors outside the USA are encouraged to contact the firm as well.
FOR MORE INFORMATION, VISIT: https://www.tenlaw.com/cases/CSPR
The lawsuit alleges violations of the federal securities laws, and the class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member. There is no minimum number of shares required to be a class member, and shareholders do not need to be lead plaintiff to recover as a class member. The lead plaintiff serves as a representative of all investors in the lawsuit. Interested CSPR shareholders have until August 18, 2020, to apply to be a lead plaintiff.
The Complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation.
Specifically, the Complaint alleges the Offering Documents failed to disclose that: (1) Casper's profit margins were actually declining, rather than growing; (2) Casper was changing an important distribution partner, costing it 130 basis points of gross margin in the first quarter of 2020 alone; (3) Casper was holding a glut of old and outdated mattress inventory that it was selling at steeply discounted clearance prices, further impairing the Company's profitability; (4) Casper was suffering accelerating losses, further placing its ability to achieve positive cash flows and profitability out of reach; (5) Casper's core operations were not profitable, but were causing the Company to suffer over $40 million in negative cash flows during the first quarter of 2020 alone and doubling its quarterly net loss year over year; (6) as a result of the foregoing, Casper's ability to achieve profitability, implement its growth initiatives, and expand internationally had been misrepresented in the Offering Documents, as the Company needed to shutter its European operations, halt all international expansion, jettison over one fifth of its global corporate workforce, and significantly curtail new store openings in order to avoid an imminent cash and liquidity crisis, let alone achieve positive operating cash flows; and (7) as a result of the foregoing, Casper's revenue growth rate was not sustainable and had not positioned the Company to achieve profitability.
Investors who suffered a loss in Casper Sleep, Inc. that are interested to learn more about the lead plaintiff process are encouraged to contact the Thornton Law Firm's shareholder rights team at http://www.tenlaw.com/cases/CSPR, by email at email@example.com, or calling 617-531-3917.
FOR MORE INFORMATION: https://www.tenlaw.com/cases/CSPR
Thornton Law Firm's securities attorneys are highly experienced in representing investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Thornton Law Firm LLP
1 Lincoln Street
State Street Financial Center
Boston, MA 02111
SOURCE: Thornton Law Firm LLP
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/59406