NEW YORK, Oct. 02, 2019 (GLOBE NEWSWIRE) -- , October 2, 2019- Bragar Eagel & Squire, P.C. reminds investors that class action lawsuits have been commenced on behalf of stockholders of Overstock.com, Inc. (NASDAQ: OSTK), Waitr Holdings, Inc. (NASDAQ: WTRH), and Covetrus, Inc. (NASDAQ: CVET). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Overstock.com, Inc. (NASDAQ: OSTK)
Class Period: May 9, 2019 to September 23, 2019
Lead Plaintiff Deadline: November 26, 2019
The complaint, filed on September 27, 2019, alleges that on September 23, 2019, following months of media reports on the erratic behavior of founder Patrick Byrne, who resigned as CEO in August 2019 and subsequently sold over $91.98 million worth of company stock within a three day period, the company later disclosed the sudden and unexpected departure of CFO Gregory Iverson the week prior, and that the company would lower guidance to break even EBITDA for the year, eliminating the projected $17.5 million that Overstock had recently provided and which was critical to support the launch of its tZERO service.
On this news, the price of Overstock shares fell from a closing price of $14.97 per share on September 20, 2019, the trading day prior to September 23, 2019, to close at $11.19 per share on September 23, 2019.
For more information on the Overstock class action go to: https://bespc.com/ostk.
Waitr Holdings, Inc. (NASDAQ: WTRH)
Class Period: Securities purchased between May 17, 2018 to August 8, 2019 (the “Class Period”) and/or pursuant or traceable to Waitr’s November 2018 going public transaction with Landcadia or in its May 2019 secondary public offering (“SPO”).
Lead Plaintiff Deadline: November 26, 2019
Waitr is an online food ordering and delivery services company that was formed on November 15, 2018 through a public transaction between Waitr Inc. and Landcadia Holdings, Inc. After the transaction, its shares began publicly trading on the Nasdaq under the symbol "WTRH."
On August 8, 2019, the company disclosed highly disappointing financial and operational results for the second quarter of 2019, including the resignation of its CEO; that its integration of BiteSquad.com, LLC, which it acquired in January 2019, was not proceeding according to plan; that the company was laying off personnel; and that losses were far higher than previously anticipated.
On this news, the price of Waitr shares fell 50%. Waitr's market capitalization was $134 million, down from $910 million on March 13, 2019.
For more information on the Waitr class action go to: https://bespc.com/WTRH
Covetrus, Inc. (NASDAQ: CVET)
Class Period: February 8, 2019 to August 12, 2019
Lead Plaintiff Deadline: November 29, 2019
Covetrus was formed through a spin-off and merger of the Animal Health Business of Henry Schein with Vets First Choice (VFC), a privately-held company, to create what the company described to investors as the only global animal health technology and services company.
The complaint, filed on September 30, 2019, alleges that in the offering documents for the spin-merger and throughout the Class Period, defendants made a series of false and misleading statements and omissions concerning the newly combined companies infrastructure and capabilities, as well as the true costs of becoming independent from Henry Schein. After the merger, defendants assured investors that the integration of the legacy Henry Schein Animal Health Business and VFC was on track to hit financial targets. On August 13, 2019, Covetrus shocked investors by reporting a net loss of $0.09 per share for the second quarter of 2019 compared to consensus analyst estimates of $0.17 in net income per share. Covetrus also slashed its 2019 EBITDA guidance to just $200 million, down substantially from its prior EBITDA guidance of approximately $250 million issued in February and May 2019. In doing so, Covetrus admitted that the Company would have to spend tens of millions of dollars more in infrastructure spending and redundant costs.
The company also admitted previously undisclosed difficulties integrating the platforms and disclosed increased spending to eliminate obligations to Henry Schein as part of the spin-off agreement. In response to these and other disclosures, the company’s stock price decreased by 40%, or $9.30 per share, to close at $13.89 per share on August 13, 2019.
The complaint further alleges that during the Class Period, defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about Covetrus business, operations, and prospects. Specifically, defendants representations to investors: (i) overstated Covetrus capabilities with regard to inventory management and supply chain services; (ii) understated the costs of the integration of Henry Scheins Animal Health Business and VFC, including the timing and nature of those costs; (iii) understated Covetrus separation costs from Henry Schein; and (iv) understated the impact on earnings from online competition and alternative distribution channels as well as the impact of the loss of a large customer in North America just prior to the Company's separation from Henry Schein.
For more information on the Covetrus class action go to: https://bespc.com/cvet.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com