SAN FRANCISCO, Dec. 28, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors with losses over $50,000 of the January 19, 2016 lead plaintiff deadline in the securities fraud class action lawsuit filed against Party City Holdco, Inc. (NYSE:PRTY).
If you purchased Party City securities traceable to the Registration Statement and Prospectus issued in connection with the Company’s April 16, 2015 initial public offering, contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing PRTY@hbsslaw.com or visiting http://www.hbsslaw.com/cases/PRTY. The lawsuit was filed in the U.S. District Court for the Southern District of New York and investors have until January 19, 2016 to move the court to act as lead plaintiff.
In April 2015, when Party City executed its IPO it failed to disclose several business risks the Company was facing and thereby injured investors. Party City concealed from investors that the Company was experiencing soft consumer traffic, extreme disruptions related to remerchandising, and a sales anomaly created by an uptick in sales due to the popularity of merchandise related to Disney’s Frozen movie.
According to the complaint, after the true details of these risks came to light over the last several months, first during an August 13, 2015 conference call that referenced the Disney Frozen licensed product and the anticipated disruptions from store remerchandising. Next, on November 12, 2015 a Company press release explained how the Disney Frozen product-line created a year-over-year anomaly in the Company’s business. These revelations caused the value of Party City shares to decline significantly.
Whistleblowers: Persons with non-public information regarding Party City should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email PRTY@hbsslaw.com.
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Contact: Reed Kathrein, 510-725-3000
Source:Hagens Berman Sobol Shapiro LLP