NEW YORK, Aug. 04, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Five Below, Inc. (NASDAQ: FIVE) and certain of the Company’s senior executives.
If you invested in Five Below, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/five-below-inc.
Investors have until September 30, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Five Below securities between March 20, 2024 and July 16, 2024, inclusive. The case is pending in the U.S. District Court for the Eastern District of Pennsylvania and is captioned Himes v. Five Below, Inc., No. 2:24-cv-3638.
What is the Lawsuit About?
The complaint alleges that Five Below operates specialty discount stores, and prices most of its products at $5 or less. The complaint further alleges that during the relevant period, the company misrepresented its accelerating store traffic, merchandising opportunities and store expansions that underpinned its long-term growth. In truth, Five Below had allegedly experienced macroeconomic pressures that dented its store traffic and interfered with the successful execution of the company’s business.
On June 5, 2024, Five Below is alleged to have revealed that macroeconomic pressures caused lower income customers to reduce their spending, leading to disappointing financial results for the company’s first quarter of 2024. Still, Five Below assured investors that “chasing trends has always been a strength of ours, and we will continue to quickly identify and capitalize on trends.” Despite the assurance, the news caused the price of Five Below stock to decline about 10%, from $132.79 per share on June 5, 2024 to $118.72 per share on June 6, 2024.
After the market closed on July 16, 2024, Five Below announced that CEO Joel Anderson resigned as President and CEO, and as a member of the Board of Directors, effective immediately. At the same time, the company reported that the quarter-to-date results for its second quarter of fiscal 2024 showed that comparable sales decreased 5% over the prior year. As a result, Five Below also announced that sales for the full quarter would be in the range of $820 million - $860 million and that comparable sales would decline approximately 6%-7%. This news caused a significant 25% decline in the price of Five Below stock, from $102.07 per share on July 16, 2024 to $76.50 per share on July 17, 2024.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/five-below-inc.
What Can You Do?
If you invested in Five Below. you have rights and are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses. Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/five-below-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/five-below-inc
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