RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against FTD Companies, Inc. (NASDAQ: FTD) (“FTD” or the “Company”) on behalf of purchasers of the Company’s securities between March 13, 2015 and March 14, 2017, inclusive (the “Class Period”).
FTD shareholders who purchased securities during the Class Period may, no later than May 19, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/ftd-companies-inc#join.
FTD provides floral and related gifts and products to consumers and retail florists primarily in the U.S., Canada, the U.K., and the Republic of Ireland. In December 2014, FTD announced the closing of a $430 million acquisition of “Provide Commerce,” a floral and gifting business.
The shareholder class action complaint alleges that FTD and certain of its executive officers made a series of materially false and misleading statements to investors during the Class Period. Specifically, the defendants are alleged to have made materially false and misleading statements and/or failed to disclose that: (i) FTD’s financial statements contained errors relating to the assessment of cross-border indirect taxes; (ii) in turn, the Company lacked effective internal controls over financial reporting; and (iii) FTD had overstated the benefits of the Provide Commerce acquisition. The complaint further alleges that, as a result of the foregoing, FTD’s public statements were materially false and misleading at all relevant times.
On March 14, 2017, FTD reported its Fourth Quarter and Full Year 2016 financial and operational results. Therein, the Company disclosed a net loss for the Fourth Quarter “primarily due to goodwill impairment charges related to the Provide Commerce segment of $84.0 million.” FTD also announced that it would restate its previously issued financial statements for Fiscal 2014 and Fiscal 2015 to correct certain errors.
Following this news, shares of FTD’s stock declined $5.54 per share, or 23.7%, to close on March 15, 2017 at $17.85 per share.
FTD shareholders may, no later than May 19, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/ftd-companies-inc#join.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.