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Dollarama Inc. (OTC: DLMAF) Investor Investigation Over Possible Violations Of Securities Laws Announced

  • Investors who purchased shares of Dollarama Inc. (OTC: DLMAF), have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Investigation Overview

Company
Dollarama Inc.
Security
OTC: DLMAF

Summary

An investigation on behalf of investors of Dollarama Inc. (OTC: DLMAF) shares over potential securities laws violations by Dollarama Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Dollarama Inc. (OTC: DLMAF) concerning whether a series of statements by Dollarama Inc. (OTC: DLMAF regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Dollarama Inc. operates a chain of dollar stores in Canada. The company's stores offer consumer products, general merchandise, and seasonal items, including private label and branded products. Dollarama Inc. reported that its Total Revenue rose from over $2.96 billion for the 12 months period that ended on Janaury 29, 2017 to over $3.26 billion for the 12 months period that ended on January 28, 2018, and that its Net INcome over those respective time periods increased from $445.63 million to $519.41 million.

Shares of Dollarama Inc. (OTC: DLMAF) reached as high as $45.69 per share in early 2018.


On October 31, 2018, a report was published entitled 'Hard To Bargain For A Higher Price'. The Spruce Point report highlighted purportedly '[q]uestionable accounting and governance practices [that] cast doubt on management and the underlying health of the business'. Specifically, the report asserted that '[t]he Rossy family's tight control over management has led to the appearance of nepotism [and] questionable related-party real estate transactions'; that Dollarama's executive compensation structure 'encourag[es] aggressive accounting and inefficient capital allocation that flatters the income statement'; and that '[m]anagement appears to use aggressive FX hedges and an off-balance-sheet relationship with a Central American retail affiliate to boost margins in a non-transparent way.'

Shares of Dollarama Inc. (OTC: DLMAF) declined to as low as $25.64 per share on November 1, 2018.

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