Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Party City Holdco Inc. (PRTY, PRTYQ)
News provided byGlancy Prongay & Murray LLP
Sep 19, 2023, 12:52 PM ET
LOS ANGELES, Sept. 19, 2023 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming October 2, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Party City Holdco Inc. (“Party City” or the “Company”) (NYSE: PRTY; OTC: PRTYQ) securities between November 8, 2022 and June 9, 2023, inclusive (the “Class Period”).
If you suffered a loss on your Party City investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Party-City-Holdco-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On January 17, 2023, Party City abruptly filed for bankruptcy, disclosing the Company’s ongoing liquidity shortfall, its need for loans beyond credit lines available, and its inability to find lenders willing to provide those loans.
On June 9, 2023, Party City further revealed that its audit firm had resigned due to a disagreement about the Company’s decision to not include a “going concern” warning in its third quarter 2022 financial report, which would have alerted investors to the Company’s potential inability to continue as a going concern. Furthermore, the Company also disclosed that there was a “material weakness in internal control over financial reporting” at the time of the third quarter 2022 10-Q.
As a result of these revelations, investors suffered significant losses.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants: (1) affirmatively misrepresented that its capital resources “will be adequate to meet our liquidity needs for at least the next 12 months”; (2) omitted that there was substantial doubt about the Company’s ability to continue as a going concern; (3) downplayed the nature and extent of the Company’s then-existing liquidity problems; (4) omitted that the Company’s existing credit facilities were insufficient to satisfy its operational needs and that it was unable to obtain additional loans in the normal course of business; (5) omitted that there was a material weakness in its internal control over financial reporting; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Party City securities during the Class Period, you may move the Court no later than October 2, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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