RADNOR, Pa., Dec. 2, 2015 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a class action lawsuit has been filed on behalf of shareholders who purchased the common stock of Party City Holdco Inc. (NYSE: PRTY) ("Party City" or the "Company") in connection with and following the Company's initial public offering ("IPO") on or about April 16, 2015.
Party City shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at [email protected]. For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/party-city-holdco-inc.
Party City, through its subsidiaries, designs, manufactures, and distributes party supplies throughout North America. Party City's stores sell costumes, novelties, gifts, and paper goods for parties and celebrations.
On April 16, 2015, Party City completed its IPO of common stock to investors, selling over 25 million shares of stock to investors at $17.00 per share, for gross proceeds of over $425 million.
According to the shareholder class action complaint, the Offering Documents filed in connection with the Company's IPO contained misstatements of material fact and/or omissions. Specifically, the complaint alleges that the defendants were aware of but failed to disclose certain risks to investors in the Offering Documents, including the impact on the Company of (i) soft consumer traffic trends, (ii) a lapping of the extraordinary performance of the Disney Frozen franchise from the prior year, and (iii) a store reset initiative.
As further alleged in the complaint, on November 12, 2015, Party City reported disappointing quarterly financial and operational results. During a conference call to discuss the quarterly financial results, Party City's President reported that the quarterly sales shortfall was due to, among other things, (i) "a significant store reset initiative" and (ii) an underestimation of the impact that the prior year's Frozen "phenomenon" would have on third quarter 2015 sales results.
On this news, shares of Party City's common stock fell $1.75 per share, or 11.7 percent, to close on November 13, 2015 at $13.13 per share, on heavy trading volume. The closing price of the Company's stock on November 13, 2015 represented a 22 percent decline in the value of Party City's common stock from the time of its IPO less than seven month earlier.
Party City shareholders may, no later than January 19, 2016, petition the Court to be appointed as a lead plaintiff of the class.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported 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.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP