Lawsuit Overview
February 1, 2017 - The court granted defendants' motions to dismiss.
July 1, 2016 - Defendants filed a motion to dismiss.
April 26, 2016 - The lead plaintiff filed an amended consolidated complaint.
February 24, 2016 - Lead plaintiff and lead counsel were appointed.
January 19, 2016 - Lead plaintiff motions were filed.
November 18, 2015 - An investor in shares of Party City Holdco Inc (NYSE: PRTY) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Party City Holdco Inc in connection with Party City Holdco Inc’s April 16, 2015 initial public offering (“IPO”).
According to the complaint the plaintiff alleges that the defendants violated Federal Securities Laws in connection with Party City Holdco Inc’s April 16, 2015 IPO. More specifically, the plaintiff claims that Defendants allegedly failed to disclose certain risks in the Registration Statement and Prospectus, including the impact on Party City due to soft consumer traffic trends, due to the extraordinary performance of the Disney Frozen franchise from the prior year, and due to the store reset initiative.
Party City Holdco Inc reported that annual Total Revenue rose from over $1.91 billion in 2012 to over $2.27 billion in 2014 and that its Net Loss of $45.31 million in 2012 turned into a Net Income of $56.12 million in 2014.
On April 16, 2015, Party City Holdco Inc stock opened for trading at $20.50, the day the Company sold 21.9 million shares of stock in its initial public stock offering (the “IPO”), reaching a high of $20.84 per share that day.
On November 12, 2015, Party City Holdco Inc reported a loss of $44.5 million in its third quarter. Party City Chief Executive Officer James M. Harrison described Party City Holdco Inc’s retail results as weaker than expected.
Shares of Party City Holdco Inc (NYSE: PRTY) declined on November 13, 2015 to as low as $11.20 per share.
On November 18, 2015, NYSE: PRTY shares closed at $11.32 per share.