RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Costco Wholesale Corporation (NASDAQ: COST) (“Costco” or the “Company”) common stock between June 6, 2018 and October 25, 2018, inclusive (the “Class Period”).
Costco shareholders may, no later than January 7, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Costco and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Costco lacked effective internal control over financial reporting; (2) consequently, Defendants’ statements about Costco’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 4, 2018, Costco revealed “in its upcoming fiscal 2018 Annual Report on Form 10-K, it expects to report a material weakness in internal control. The weakness relates to general information technology controls in the areas of user access and program change-management over certain information technology systems that support the Company’s financial reporting processes. The access issues relate to the extent of privileges afforded users authorized to access company systems.” Following this news, Costco stock dropped from a close of $231.68 per share on October 4, 2018, to a close of $218.82 on October 5, 2018.
If you are a member of the class, you may, no later than January 7, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.