NEW YORK, Jan. 12, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities that purchased the common stock of Five Below, Inc. ("Five Below" or the "Company") (Nasdaq:FIVE) between June 5, 2014 and December 4, 2014, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that during the Class Period the Company concealed that its two founders intended to step down as CEO and Chairman. The Complaint also alleges that at the same time that the Company was concealing this material fact, it raised its fiscal 2014 sales and earnings guidance twice. With the Company's stock trading at inflated prices due to these alleged omissions and misrepresentations, both of the Company's founders and its CFO took advantage, and sold $30 million worth of their personally held shares at these fraud-inflated prices.
On December 4, 2014, the Company disclosed that its sales growth had slowed and that it was reducing its sales and profit forecasts. On the same day, the Company's two founders also announced their resignations as CEO and Chairman. On this news, the price of the Company stock fell, closing down 21% from its Class Period high.
If you wish to serve as lead plaintiff, you must move the Court no later than March 10, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or 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 email@example.com or firstname.lastname@example.org.
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Source:Gainey McKenna& Egleston