SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of HD Supply Holdings, Inc. (“HD Supply” or the “Company”) (Nasdaq: HDS) between November 9, 2016 and June 5, 2017, inclusive (the “Class Period”).
If you purchased or otherwise acquired HD Supply securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than September 11, 2017. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
HD Supply investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the HD Supply Securities Class Litigation
HD Supply, based in Atlanta, Georgia, HD Supply Holdings, Inc. is one of the largest industrial distributors in North America.
The action alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) HD Supply could not meet its full year 2017 growth and operational leverage targets; (2) the operational recovery of its Facilities Maintenance (“FM”) supply chain was not “on track” as the Company had claimed; and (3) HD Supply was divesting its key Waterworks segment. During the Class Period, when HD Supply’s stock price traded at artificially inflated levels, Defendant Joseph DeAngelo, Chief Executive Officer (“CEO”) and Chair of HD Supply, sold $54 million of his personal Company stock.
In early 2016, HD Supply’s FM segment experienced supply chain issues leading to a large build-up of inventory at HD Supply’s distribution centers. The Company took remedial actions to rebalance its inventory throughout the country. Defendants claimed in November 2016 that the FM recovery was “on track” and that HD Supply was “perfectly positioned to enter 2017 and deliver on [its] commitments of 300 basis points more than market, one-and-a-half times operating leverage and 75% cash generation.”
On June 6, 2017, HD Supply reported disappointing Q1 2017 earnings and that it had agreed to sell Waterworks, the nation’s largest distributor of water, sewer, storm and fire protection products and a key business segment for HD Supply. The Company also announced increased capital investments in its FM segment, so it had to reduce its operating leverage targets for 2017. On this news, HD Supply’s share price declined $7.24 per share, or 17.5%, from a close of $41.27 per share on June 5, 2017 to a close of $34.03 per share on June 6, 2017, on extremely heavy trading volume. The following day, HD Supply’s share price dropped an additional $1.22 per share, for a total two-day drop of 20.49%.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In late 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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