NEW YORK, April 24, 2017 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against FTD Companies, Inc. (“FTD” or the “Company”) (NASDAQ:FTD) and certain of its officers. The class action, filed in United States District Court, Northern District of Illinois, and docketed under 17-cv-02135, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired FTD securities between March 13, 2015 and March 14, 2017 both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased FTD securities during the Class Period, you have until May 19, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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FTD is a floral and gifting company. The Company provides floral, gift and related products and services to consumers, retail florists, and other retail locations primarily in the U.S., Canada, the U.K., and the Republic of Ireland. In December 2014, FTD announced the closing of its acquisition of Provide Commerce (“Provide”), a floral and gifting business previously owned by Liberty Interactive Corporation.
The Complaint 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 made false and/or misleading statements and/or failed to disclose that: (i) FTD’s financial statements contained errors relating to the assessment of cross-border indirect taxes; (ii) in turn, the Company lacked effective internal controls over financial reporting; (iii) FTD had overstated the benefits of the Provide acquisition; and (iv) as a result of the foregoing, FTD’s public statements were materially false and misleading at all relevant times.
On March 14, 2017, post-market, FTD issued a press release and filed a Current Report on Form 8-K with the SEC, entitled “FTD Companies, Inc. Announces Fourth Quarter and Full Year 2016 Financial Results,” announcing certain of the Company’s financial and operating results for the quarter and year ended December 31, 2016. The Company announced, in part, that the Company’s net loss for the quarter was “primarily due to goodwill impairment charges related to the Provide Commerce segment of $84.0 million”. FTD also announced that, due to identified errors, the Company will restate previously reported consolidated financial statements for the years ended December 31, 2015 and 2014 and for the quarters in the years ended December 31, 2015 and 2016.
On this news, FTD’s share price fell $5.54, or 23.69%, to close at $17.85 on March 15, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.