An investigation on behalf of investors of PriceSmart, Inc. (NASDAQ: PSMT) shares over potential securities laws violations by PriceSmart 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 PriceSmart, Inc. (NASDAQ: PSMT) concerning whether a series of statements by PriceSmart, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

San Diego, CA PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia. PriceSmart, Inc. reported that its Total Revenue rose from over $2.99 billion for the 12 months period that ended on August 31, 2017 to over $3.16 billion for the 12 months period that ended on August 31, 2018 and that its Net INcome over those respective time periods declined from $90.72 million to $74.32 million.

On October 25, 2018, PriceSmart, Inc. filed a Form with the Securities and Exchange Commission disclosing non-reliance on previously issued financial statements, citing discovery of balance sheet misclassification. According to the form, the Audit Committee met on October 24, 2018 and determined that, as a result of the misclassification, certain financial statements would need to be restated; in addition, PriceSmart also expects to include in its Form 10-K a conclusion that there was a material weakness in internal controls over financial accounting related to this misclassification.


Shares of PriceSmart, Inc. (NASDAQ: PSMT) declined to as low as $55.53 per ahare on December 20, 2018.