RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Weight Watchers International, Inc. (“Weight Watchers” or the “Company”) (NASDAQ: WTW) between May 4, 2018 and February 26, 2019, inclusive (the “Class Period”).
Weight Watchers shareholders may, no later than May 3, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Weight Watchers 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 filed in this class action alleges that, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Weight Watchers was experiencing diminished subscriber demand attributable to the onslaught of new competing smartphone fitness apps, meal-delivery services, and other tech advances that were driving down Weight Watchers’ new subscriber growth and subscriber retention rates; (2) diminished subscriber growth, when coupled with a much larger number of fourth quarter subscription lapses than Weight Watchers would typically experience, made it highly unlikely that Weight Watchers would retain four million subscribers by the end of 2018; (3) Weight Watchers was not on track to grow its subscriber count to five million or to drive annual revenues to more than $2 billion by the end of 2020; (4) a decreased subscriber count would result in decreased revenues profits; and (5) as a result, defendants’ statements about Weight Watchers’ business metrics and financial prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 26, 2019, Weight Watchers announced that its subscriber count had declined to 3.9 million subscribers, and stated that enrollment would continue to decline during 2019. Weight Watchers also announced that it was targeting revenues of only $1.4 billion for fiscal year 2019, significantly less than the nearly $1.7 billion in revenues it had led the market to expect. On this news, Weight Watchers’ share price fell $10.20, or nearly 35%, to close at $19.37 per share on February 27, 2019, thereby injuring investors.
If you are a member of the class, you may, no later than May 3, 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.