SAN DIEGO, May 02, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in New York on behalf of certain purchasers of shares of La Quinta Holdings Inc (NYSE:LQ) over alleged Securities Laws Violations by La Quinta Holdings.
Investors who purchased shares of La Quinta Holdings Inc (NYSE:LQ) have certain options and for certain investors are short and strict deadlines running. Deadline: June 24, 2016. (NYSE:LQ) investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that the Registration Statement and Prospectus issued in connection with the Company's secondary public offering (the "SPO") failed to disclose the following material trends, events and/or uncertainties La Quinta Holdings Inc (“La Quinta”) was experiencing declining customer demand in La Quinta's key Texas market, there were on-going disruptions caused by the transitioning of the Company's call center operations, and La Quinta was experiencing declining customer demand and market share losses due, in part, to certain of La Quinta's facilities being outdated and in need of major renovation, thereby necessitating that the Company make significant capital expenditures and undergo operational disruptions.
Moreover, the plaintiff alleges that defendants misrepresented and/or failed to disclose, among other things, the following adverse facts that there was a material slowdown in demand for its hotel rooms in its key Texas market between February 25, 2015 and September 17, 2015, that La Quinta was experiencing disruptions associated with a "transition" of the Company's reservation call center, which was having a material adverse effect on the Company's operations, that La Quinta was facing market share losses and declining customer demand due, in part, to its outdated facilities, that a significant number of La Quinta's hotels were in need of major renovation, which would require significant capital expenditures and result in operational disruptions, that La Quinta had overstated the amounts buyers were willing to pay for certain of its properties, that those stated reasons were reasonably likely to have a material adverse effect on La Quinta's future operating results, and that, based on the foregoing, defendants lacked a reasonable basis for the Company's 2015 guidance and their positive statements about La Quinta's then-current business and future financial prospects.
Those who purchased La Quinta Holdings Inc (NYSE:LQ) shares should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.