NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/wayfair/) is updating purchasers of Wayfair Inc. (NYSE:W) Class A common stock during the period between August 2, 2018 and October 31, 2018 (the “Class Period”) regarding the opportunity to serve as lead plaintiff in a securities case filed in the District of Massachusetts, captioned Goodstein v. Wayfair Inc., No. 19-cv-10062, and assigned to Judge Woodlock. Lead plaintiff motions are due by March 11, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Wayfair Class A common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Mary K. Blasy of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/wayfair/.
The complaint alleges that Wayfair and three senior executive officers violated the Securities Exchange Act of 1934 by making false and misleading statements and/or failing to disclose adverse information regarding Wayfair’s business and prospects, including that Wayfair had been experiencing significantly diminished demand for its online product offerings and had significantly increased advertising spending to grow sales. As a result of defendants’ false statements and/or omissions, the price of Wayfair stock was artificially inflated to more than $149 per share during the Class Period. Meanwhile, with the price of Wayfair common stock artificially inflated, certain of its senior executives and directors cashed in, selling more than $87.75 million worth of their personally held shares.
Then, on November 1, 2018, before the open of trading, Wayfair issued a press release announcing its third quarter 2018 financial results. The Company reported a massive $151.7 million GAAP net loss for the quarter, or $(1.69) per share, compared with a GAAP loss of $76.4 million, or $(0.88) per share, for the third quarter of 2017. In reality, advertising expenses had skyrocketed in the third quarter to more than $202.5 million, an increase of 43%. On this news, the price of Wayfair common stock declined precipitously, falling more than $14 per share, or nearly 13%, to close at $96.16 per share on November 1, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Wayfair Class A common stock during the Class Period (the “Class”) and is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is a national law firm representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both the amount recovered for shareholders and the total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also advocates for corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.