WAYNE, Pa., Jan. 13, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Five Below, Inc. ("Five Below" or the "Company") (NASDAQ: FIVE) common stock during the period between June 5, 2014 and December 4, 2014 (the "Class Period").
Five Below shareholders may, no later than March 10, 2015, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Five Below and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/five.
The complaint charges Five Below and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Five Below is a specialty discount retailer targeted at teens and pre-teens that prices all of its clothing and accessories at $5 or below.
The complaint alleges that during the Class Period, the defendants made false and misleading statements or failed to disclose adverse information about Five Below's business and prospects. Specifically, the complaint alleges that while actively concealing from investors that the Company's two founders intended to step down from their roles as Chief Executive Officer ("CEO") and Chairman and name as CEO their newly hired President – who was relatively new to Five Below and totally untested in the role of CEO at a publicly traded company – Five Below raised its fiscal 2014 sales and earnings guidance twice, once at the start of the Class Period on June 5, 2014 and then again on September 10, 2014. With the price of Five Below common stock increasing on their misrepresentations about the Company's business metrics and financial prospects, reaching a Class Period high of nearly $48 in intraday trading, both of the Company's founders and its Chief Financial Officer cashed in, selling almost $30 million worth of their personally held shares at fraud-inflated prices.
On December 4, 2014, Five Below disclosed that its sales growth had diminished and that it was reducing its annual sales and profit forecasts. That same day, the Company's two founders also announced their resignations as CEO and Chairman of Five Below – disclosing that the newly hired President was taking over as CEO. On this news, the price of Five Below stock fell, closing down 21% from its Class Period high.
If you are a member of the class, you may, no later than March 10, 2015, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP