NEW YORK, Aug. 16, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Party City Holdco, Inc. (OTC: PRTY, PRTYQ), Hayward Holdings, Inc. (NYSE: HAYW), and Verizon Communications, Inc. (NYSE: VZ). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Party City Holdco, Inc. (OTC: PRTY, PRTYQ)
Class Period: November 8, 2022 – June 9, 2023
Lead Plaintiff Deadline: October 2, 2023
After trading on January 17, 2023, Party City filed for bankruptcy protection under Chapter 11.
Following this news, Party City's stock price declined by 67% over a two-day span from a closing price of $0.374 on January 17, 2023, to $0.121 on January 19, 2023, a decline of $0.253.
Then, on June 9, 2023, Ernst & Young LLP resigned as the Company's auditor due to a disagreement about Party City's decision not to include a "going concern" warning in its quarterly filing on Form 10-Q for the third quarter 2022.
Following this news, Party City's stock price declined by 22% over the next three trading days from a closing price of $0.046 on June 9, 2023 to $0.036 on June 14, 2023.
According to the lawsuit, throughout the Class Period, the defendants: (1) affirmatively misrepresented that its capital resources “will be adequate to meet our liquidity needs for the next 12 months”; (2) omitted that there was substantial doubt about the Company’s ability to continue as a going concern; (3) downplayed the nature and extent of the Company’s then existing liquidity problems; (4) omitted that the Company’s existing credit facilities were insufficient to satisfy its operational needs and that it was unable to obtain additional loans in the normal course of business and; (5) omitted that there was a material weakness in its internal control over financial reporting. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Party City class action go to: https://bespc.com/cases/PRTY
Hayward Holdings, Inc. (NYSE: HAYW)
Class Period: October 2, 2023
Lead Plaintiff Deadline: March 2, 2022 – July 27, 2022
On July 28, 2022, Hayward Holdings announced financial results for the second fiscal quarter of 2022, shocking analysts and investors by revealing that Hayward Holdings was expecting its channel partners to reduce their inventory on hand by approximately four to six weeks in the second half of 2022. As a result, Hayward Holdings reduced its 2022 guidance to reflect massive inventory reduction in the second half of the year. Notably, during an earnings call held that same day, defendant CEO Kevin Holleran admitted that the inventory bottleneck traced back to inventory decisions made “at the end of 2021” – i.e., before the Class Period.
As a result, the price of Hayward Holdings common stock fell nearly 24%, damaging investors.
As the Hayward Holdings class action lawsuit alleges, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Hayward Holdings and its management had engaged in a channel-stuffing scheme designed to artificially boost Hayward Holdings’ short-term sales and earnings; (ii) Hayward Holdings had flooded its channel partners with inventory that they did not want or need at a level that far outpaced then-existing consumer demand; (iii) Hayward Holdings’ channel partners were suffering from an inventory glut as a result of the channel-stuffing scheme that would require a massive de-stocking in the second half of 2022; (iv) Hayward Holdings’ channel-stuffing scheme had cannibalized future sales, materially impairing Hayward Holdings’ ability to sell to its customers; (v) the demand for pool equipment had slowed down, which, combined with flooding channel partners with more inventory, led to an inventory glut and the need for these channel partners to reduce inventory levels; and (vi) as a result of the above, Hayward Holdings’ projected 2022 financial results were not achievable and lacked a reasonable basis in fact.
For more information on the Hayward class action go to: https://bespc.com/cases/HAYW
Verizon Communications, Inc. (NYSE: VZ)
Class Period: February 4, 2020 – July 26, 2023
Lead Plaintiff Deadline: October 2, 2023
On July 9, 2023, the Wall Street Journal published an article reporting that more than 2,000 abandoned lead cables, previously used by Verizon and other telecommunication companies, were degrading and leaching into soil and groundwater, posing a significant public health risk. In a related article, the Wall Street Journal estimated that cleanup costs could run into the tens of billions of dollars. Following publication of these articles, analysts downgraded AT&T and other telecommunication company stocks.
Following this news, Verizon stock dropped $2.55 per share, or 7.5%, to close at $31.46 on July 17, 2023.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, that: (1) Verizon owns cables around the country that are highly toxic due to being wrapped in lead, and which harm Company employees and non-employees alike; (2) it faces potentially significant litigation risk, regulatory risk, and reputational harm as a result of its ownership of these lead cables and the health risks stemming from their presence around the United States; (3) it was warned about the damages and risks presented by these cables but did not disclose that they posed a threat to employee safety, to everyday people, and communities around the country; and (4) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Verizon class action go to: https://bespc.com/cases/VZ
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
