Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Aug. 21, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises The Lovesac Company (NASDAQ: LOVE) investors that the firm has initiated an investigation into possible securities violations and may file a class action on behalf of investors. Lovesac investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Furniture company Lovesac issued a press release on August 15, 2023, revealing that it cannot rely on previously issued financial statements and audit reports. An internal investigation was initiated in June 2023 by the Audit Committee due to an entry error that incorrectly capitalized $2.2 million of shipping expenses. This error affected financial statements for the quarter ended April 30, 2023, and the fiscal year ended January 29, 2023. Additional errors were found in the methodology used to calculate last mile freight expenses, causing overstated operating and net income. Lovesac believes that operating income and net income were overstated by around $2.0 million to $3.0 million and $1.5 million to $2.5 million, respectively, for the fiscal year ended January 29, 2023. For the thirteen weeks ended April 30, 2023, the overstatements were less than $0.5 million each. The company stated that previously issued financial statements and reports should no longer be relied upon. Following this news, Lovesac's stock price dropped by 2.06% to $23.76 per share on August 16, 2023.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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