NEW YORK, July 17, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in HD Supply Holdings, Inc. ("HD Supply" or the "Company") (NasdaqGS:HDS) of the September 11, 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 HD Supply stock or options between November 9, 2016 and June 5, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/HDS. 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 [email protected].
FARUQI & FARUQI, LLP
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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 Northern District of Georgia on behalf of all those who purchased HD Supply securities between November 9, 2016 and June 5, 2017 (the "Class Period"). The case, City of Hollywood Police Officers' Retirement System v. HD Supply Holdings, Inc. et al. No. 1:17-cv-02587 was filed on July 10, 2017, and has been assigned to Judge Eleanor Louise Ross.
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: (1) HD Supply's 2017 full year growth and operational leverage targets were unattainable; (2) the recovery of its Facilities Maintenance ("FM") supply chain was not going as planned; (3) the Company was attempting to sell its Waterworks segment; and (4) the Company's Chief Executive Officer Joseph J. DeAngelo, with full knowledge of the aforementioned undisclosed facts, embarked on a selling spree of personal holdings of HD Supply stock that netted him over $54 million.
Specifically, on June 6, 2017, the Company disclosed a plan to accelerate its investment spending in FM, and that the Company would be redeploying working capital into the business, causing it to lower its operational leverage targets. On the same day, the Company announced that it had also entered into a definitive agreement to sell its Waterworks business segment.
Premarket, on June 6, 2017, the Company held a conference call in which its executives revealed that HD Supply was "seeing pretty significant margin compression pressures", and further disclosed that operating leverage at the Company's FM segment may fall below previously forecasted levels.
Following this series of announcements, HD Supply's share price fell from $41.27 per share on June 5, 2017, to a closing price of $34.03 on June 6, 2017—a $7.24 or a 17.54% drop. HD Supply's share price then continued trading lower the next day.
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 HD Supply's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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