The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to reveal material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company overstated net sales; (2) that the Company failed to properly write-off the value of certain returned items; (3) that there was a material discrepancy in accounts receivable related to the damaged/returned items; (4) that, as such, the Company's EBIT was overstated; (5) that the company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company's financial statements and Defendants' statements about Cnova's business, operations, and prospects, were materially false and misleading at all relevant times.
On November 19, 2014, Cnova priced its IPO of 26,800,000 shares, at $7.00 per share, exclusive of the backers' over-allotment option to purchase 4,020,000 additional shares.
On December 18, 2015, after the market closed, Cnova released "Cnova N.V. Initiates a Review of Inventory in Brazil." Included in this release, Cnova unveiled that its Board of Directors engaged legal advisors and external forensic accountants to perform a review of issues in connection with employee misconduct related to inventory management. According to the Company, the issues include the handling of product returns and damaged product inventory at distribution centers of Cnova's Brazilian subsidiary, Cnova Comércio Eletrônico S.A.
Following this news, Cnova shares dropped $0.53 or over 18% to close at $2.42 per share on December 21, 2015, hurting shareholders.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint or join the action, please visit the firm's site: http://www.bgandg.com/#!cnv/it46z. To discuss this action, or for any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Cnova N.V. you have until March 21, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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SOURCE Bronstein, Gewirtz & Grossman, LLC