NEW YORK, July 12, 2017 (GLOBE NEWSWIRE) -- Safirstein Metcalf announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Georgia against HD Supply Holdings, Inc. ("HD Supply" or the "Company") (NASDAQ:HDS) on behalf of investors who purchased or otherwise acquired HD Supply securities between November 9, 2016 and June 5, 2017, inclusive (the "Class Period").
If you purchased HD Supply securities during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com.
If you wish to serve as lead plaintiff, you must move the Court no later than September 11, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative 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.
The complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (1) HD Supply's full year 2017 growth and operational leverage targets were unattainable; (2) the operational recovery of its Facilities Maintenance supply chain was not going according to plan; (3) the Company was exploring the sale of its Waterworks segment; (4) Defendant Joseph DeAngelo, with full knowledge of the undisclosed materially adverse facts alleged herein, embarked on a selling spree of personal holdings of HD Supply stock that netted him over $54 million in proceeds; and (5) as a result of the foregoing, Defendants' statements about HD Supply's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
On June 6, 2017, HD Supply reported first quarter 2017 earnings that missed analyst estimates and disclosed the divestiture of one of its main business segments, “Waterworks,” and announced increased capital investments in its Facilities Maintenance segment. HD Supply was forced to reduce its operating leverage targets for full year 2017—a widely followed metric in the industrial product supply industry.
Following these announcements, the Company’s share price declined $7.24 per share, or 17.5%, from a close of $41.27 per share on June 5, 2017 to a close of $34.03 per share on June 6, 2017.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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