The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of PriceSmart, Inc. (NASDAQGS: PSMT) who purchased shares between October 26, 2017 and October 25, 2018. The action, which was filed in the United States District Court for the Southern District of California, alleges that the Company violated federal securities laws.
In particular, the PriceSmart lawsuit alleges that (1) the Company’s omni-channel business strategy had failed to reach key operating goals; (2) the Company’s South America distribution strategy had failed to realize key cost saving goals; (3) the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions; (4) that these investments had been improperly classified as cash and cash equivalents; (5) the relevant corrections would materially impact financial statements; (6) there was a material weakness in the Company’s internal controls over financial reporting; (7) increasing competition negatively impacted the Company’s revenue and profitability; and (8) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Shareholders have until July 22, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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