NEW YORK, May 24, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against PriceSmart, Inc. (“PriceSmart” or the “Company”) (PSMT) in the United States District Court for the Southern District of California on behalf of those who purchased or acquired the securities of PriceSmart between October 26, 2017 and October 25, 2018, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s omni-channel business strategy had failed to reach key operating goals; (ii) the Company’s South America distribution strategy had failed to realize key cost saving goals; (iii) the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (iv) these investments had been improperly classified as cash and cash equivalents; (v) the relevant corrections would materially impact financial statements; (vi) there was a material weakness in the Company’s internal controls over financial reporting; (vii) increasing competition negatively impacted the Company’s revenue and profitability; and (viii) as a result, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the July 22, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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