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LOS ANGELES, June 10, 2020 (GLOBE NEWSWIRE) --
The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Bed Bath & Beyond Inc. ("BBBY" or the "Company") on behalf of all purchases of the company’s stock (NASDAQ: BBBY) between October 2, 2019 and February 11, 2020. Eligible Bed Bath & Beyond Inc. investors have until June 15, 2020 to seek appointment as lead plaintiff.
Founding partner, Lesley Portnoy, informs interested investors, “BBBY investors can seek an active role in the pending litigation by petitioning the court for appointment as a lead plaintiff. Lead plaintiffs are appointed by the court to act as a fiduciary on behalf of other injured investors. Also, notably for investors concerned about time and expense of the litigation, the lead plaintiffs do not bear any direct cost or expense of the case, and on the upside are eligible to receive a monetary award for participating in the case.”
The lawsuit filed on behalf of BBBY investors alleges that BBBY engaged in "aggressive disposition of inventory," and the Company lacked sufficient inventory in key categories to support holiday sales; that the Company's internal control over inventory levels and financial reporting was not effective; that, as a result of the foregoing, the Company was likely to experience reduced sales; and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations and prospects were materially misleading and/or lacked a reasonable basis.
On January 8, 2020, BBBY withdrew its fiscal 2019 guidance, purportedly due to pressures on sales and profitability, as well as a new strategic plan for the Company's operations. And, on this news, the Company's share price fell $3.20, or over 19%, to close at $13.40 per share on January 9, 2020, on unusually heavy trading volume.
Then, on February 11, 2020, BBBY issued a press release announcing preliminary fourth quarter 2019 financial results. Therein, the Company disclosed "a 5.4% decline in comparable sales driven primarily by store traffic declines combined with inventory management issues," including that "inventory within certain key categories in the BBBY assortment was too low or out-of-stock during the period."
On this news, the Company's share price fell $3.06 per share, or over 20%, to close at $11.79 per share on February 12, 2020, on unusually heavy trading volume.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com