RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Wayfair Inc. (“Wayfair” or the “Company”) (NYSE: W) securities between August 2, 2018, and October 31, 2018, inclusive (the “Class Period”).
Wayfair shareholders may, no later than March 11, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Wayfair 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 during the Class Period the Company made materially false and/or misleading statements and/or failed to disclose that: (1) Wayfair had been experiencing significantly diminished demand for its online product offerings and had significantly increased advertising spending to grow sales; (2) Wayfair, which was already more than one-third of the way into 3Q18 when it announced its 2Q18 results on August 2, 2018, had already dramatically increased advertising spending for 3Q18; and (3) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On November 1, 2018, Wayfair issued a press release announcing a net loss of $151.7 million ($1.69 per share) for the third quarter 2018, compared to a net loss of $76.4 million (or $0.88 per share) for the third quarter of 2017. The Company attributed the loss to a 43% increase in advertising expenses. On this news, the price of Wayfair stock fell more than $14 per share, or approximately 13%, to close at $96.16 per share on November 1, 2018, thereby injuring investors.
If you are a member of the class, you may, no later than March 11, 2019, 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.