NEW YORK, Sept. 10, 2018 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court of Colorado on behalf of all persons or entities who purchased or otherwise acquired Qurate Retail Group, Inc. (QRTEA) securities between August 5, 2015 and September 7, 2016 (the “Class Period”). Investors have until November 5, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint alleges that throughout the Class Period, defendants’ statements pertaining to the company’s revenue growth were materially false and misleading because defendants failed to disclose that: (1) the company was aggressively loosening the credit standards of its Easy-Pay program to attract a large group of new customers; (2) the company’s strong sales growth was due to this loose credit policy; (3) accounts receivable associated with this new group of customers posed a high risk of write-off; and (4) as a result of the foregoing, the company’s positive statements about its business, operations, and prospects lacked a reasonable basis.
On August 5, 2016, the Company issued a press release announcing financial results for the second quarter ended June 30, 2016, disclosing “significant headwinds” and sales declines as compared to prior periods. During its Second Quarter 2016 Earnings Call later that day, the company disclosed “higher than expected write-offs on Easy Pay purchases from October and November of last year” and announced increased reserves for prior period purchases. The company also disclosed that “[g]iven heightened write-off risks, we choose to moderate our Easy Pay usage beginning in June, which puts some additional pressure on our sales.” On this news, the stock price fell $5.69 per share, or 21.63 percent, to close at $20.61 per share on August 5, 2016.
On September 8, 2016, the company disclosed the true impact of the Easy Pay issues, revealing to investors that it expects to see “higher default rates” associated with these sales. Moreover, the company warned that this negative trend, while improved, would continue to impact business. On this news, the stock fell more than 8.71%, to close at $19.59 per share on September 8, 2016.
If you purchased Qurate securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Qurate Retail Group, Inc. lawsuit, please go to https://bespc.com/qurate/. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com