Skip to Content

Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against PriceSmart, Inc.

To join this class action, please complete the following Investor Certification.  [contact-form-7 id=”1169″ title=”PriceSmart, Inc. Investor Certification”]

Oklahoma City, OK (May 24, 2019) – On May 22, 2019, a securities class action lawsuit was filed in the United States District Court for the Southern District of California against PriceSmart, Inc. (NASDAQ: PSMT).  The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is October 26, 2017 through October 25, 2018.  More specifically, the complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s omni-channel business strategy had failed to reach key operating goals; (2) that the Company’s South America distribution strategy had failed to realize key cost saving goals; (3) that the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (4) that these investments had been improperly classified as cash and cash equivalents; (5) that the relevant corrections would materially impact financial statements; (6) that there was a material weakness in the Company’s internal controls over financial reporting; (7) that increasing competition negatively impacted the Company’s revenue and profitability; and (8) 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.

Specifically, on October 25, 2018, the Company disclosed poor operating results for the fourth quarter and year ended August 31, 2018. The Company also announced that its Chief Executive Officer had resigned, and also disclosed that certain financial statements would be restated to correct a balance sheet misclassification of certain assets.

On this news, PriceSmart’s share price fell from $81.57 per share on October 25, 2018 to a closing price of $69.16 on October 26, 2018: a $12.41 or a 15.21% drop.

Plaintiff seeks to recover damages on behalf of all PriceSmart, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above.  You may move the Court no later than Monday, July 22, 2019 to serve as a lead plaintiff for the entire Class.  However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995. If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact:  Robin Hester at rkh@federmanlaw.com

let’s connect

Click Here to Complete Federman & Sherwood Fee Agreement.

OKLAHOMA Office

10205 North Pennsylvania Avenue
Oklahoma City, Oklahoma 73120

TEXAS Office

212 W. Spring Valley Road,
Richardson, Texas 75081