NEW YORK, May 22, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Dick's Sporting Goods, Inc. ("Dick's" or the "Company") (NYSE: DKS) of the July 17, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Dick's stock or options between March 7, 2017 and May 15, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/DKS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Dick's securities between March 7, 2017 and May 15, 2017 (the "Class Period"). The case, McKenna v. Dick's Sporting Goods, Inc. et al, No. 1:17-cv-03680 was filed on May 16, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) the Company had overstated its adjusted EBITDA amounts; (ii) accordingly, the Company lacked effective internal controls; and (iii) as a result, the Company's public statements were materially false and misleading.
Specifically, on May 12, 2017, Dick's filed a Form 8-K/A with the Securities and Exchange Commission disclosing that a "computation error resulted in a $23.4 million overstatement of Adjusted EBITDA amounts for both the 13 weeks and 52 weeks ended January 28, 2017." On this news, over the course of two trading days, Dick's share price fell from $50.19 per share on May 11, 2017 to a closing price of $47.57 on May 15, 2017—a $2.62 or a 5.22% drop.
Then, on May 16, 2017, Dick's announced that sales at its existing stores in the first quarter of 2016 had fallen short of forecasts and advised investors that the Company planned to scale back new store openings in 2018 and 2019. On this news, Dick's share price fell from $47.57 per share on May 15, 2017 to a closing price of $41.04 on May 16, 2017—a $6.53 or a 13.73% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Dick's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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