Energy News / Shareholders Foundation, Inc.

NASDAQ:PSMT Shareholder Notice: Lawsuit Alleges Misleading Statements by PriceSmart, Inc.

Via: ReleaseWire

Updated 11:45 AM CDT, Tue, June 04,2019

A lawsuit was filed on behalf of investors in PriceSmart, Inc. (NASDAQ: PSMT) shares over alleged securities laws violations.

San Diego, CA -- (SBWIRE) -- 06/04/2019 -- An investor, who purchased shares of PriceSmart, Inc. (NASDAQ: PSMT), filed a lawsuit over alleged violations of Federal Securities Laws by PriceSmart, Inc..

Investors in shares of PriceSmart, Inc. (NASDAQ: PSMT) have certain options and for certain investors are short and strict deadlines running. Deadline: July 22, 2019. NASDAQ: PSMT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

San Diego, CA PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in Central America, the Caribbean, and Colombia. On October 25, 2018, PriceSmart, Inc. filed a Form with the Securities and Exchange Commission disclosing non-reliance on previously issued financial statements, citing discovery of "balance sheet misclassification." According to the form, the Audit Committee met on October 24, 2018 and determined that, as a result of the misclassification, certain financial statements would need to be restated; in addition, PriceSmart also "expects to include in its Form 10-K a conclusion that there was a material weakness in internal controls over financial accounting related to this misclassification."

The plaintiff claims that between October 26, 2017 and October 25, 2018, the Defendants failed to disclose to investors that the Company's omni-channel business strategy had failed to reach key operating goals, that the Company's South America distribution strategy had failed to realize key cost saving goals, that the Company had invested Trinidad and Tobago dollars into certificates of deposits with financial institutions, that these investments had been improperly classified as cash and cash equivalents; that the relevant corrections would materially impact financial statements; that there was a material weakness in the Company's internal controls over financial reporting; that increasing competition negatively impacted the Company's revenue and profitability, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of PriceSmart, Inc. (NASDAQ: PSMT) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and 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. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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Media Relations Contact
Michael Daniels
1-858-779-1554
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Web: http://www.ShareholdersFoundation.com