NEW YORK, Sept. 13, 2018 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national shareholder and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Qurate Retail, Inc. ("Qurate" or the "Company") (NASDAQ: QRTEA) and other defendants, related to alleged violations of federal securities laws. If you purchased Qurate securities between August 5, 2015, and September 7, 2016, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.
Qurate is comprised of eight leading retail brands – QVC, HSN, zulily, Ballard Designs, Frontgate, Garnet Hill, Grandin Road, and Improvements.
The Complaint alleges that Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Qurate was aggressively loosening the credit standards of its Easy-Pay program to attract a large group of new customers; (2) Qurate's strong sales growth was due to this loose credit policy; (3) accounts receivable associated with this new group of customers posed a high risk of write-off; and (4) consequently, Qurate's positive statements about its business, operations, and prospects lacked a reasonable basis.
On August 5, 2016, the Company issued a press release announcing financial results for the second quarter ended June 30, 2016, and disclosed "significant headwinds" and sales declines at QVC as compared to prior periods.
Later that day, during the Company's Second Quarter 2016 Earnings Call, the Company disclosed "higher than expected write-offs on Easy Pay purchases from October and November of last year" and announced increased reserves for prior period purchases and a decision to moderate Easy-Pay usage.
On this news, Qurate shares fell $5.69 – over 21% – to close at $20.61 on August 5, 2016.
What You Can Do
If you purchased Qurate securities between August 5, 2015, and September 7, 2016, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at firstname.lastname@example.org. The lead plaintiff deadline is November 5, 2018.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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