A lawsuit was filed on behalf of investors in Qurate Retail Group, Inc. (NASDAQ: QRTEA) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/17/2018 -- An investor in shares of Qurate Retail Group, Inc. (NASDAQ: QRTEA), filed a lawsuit over alleged violations of Federal Securities Laws by Qurate Retail Group, Inc. in connection with certain allegedly false and misleading statements.
Investors, who purchased shares of Qurate Retail Group, Inc. (NASDAQ: QRTEA), have certain options and for certain investors are short and strict deadlines running. Deadline: November 5, 2018. NASDAQ: QRTEA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
West Chester, PA based Qurate Retail Group, Inc., formerly known as Liberty Interactive, markets and sells various consumer products primarily through live merchandise-focused televised shopping programs, Websites, and mobile applications. Qurate Retail Group, Inc is number one in video commerce, with a worldwide reach of nearly 360 million homes via 16 television channels and multiple media outlets. QVC, Inc. ("QVC") is Qurate's largest segment. As a promotional tool used to spur sales, QVC offers a payment plan called Easy-Pay to its customers in the U.S., U.K., Germany and Italy (known as Q-Pay in Germany, and Italy). Easy Pay allows QVC customers to pay for certain merchandise in two or more monthly installments. When Easy-Pay is elected by the QVC customer, the first installment is billed to the customer's credit card upon shipment and an Easy-Pay receivable is established to account for the collection of subsequent installments.
Qurate is exposed to the credit risk on the Easy-Pay receivables. Specifically, if the QVC customer does not remit payment for the subsequent Easy-Pay installments, Qurate is required to record a loss and write off the Easy-Pay receivable. Under Generally Accepted Accounting Principles, the Company is required to establish adequate reserves for its Easy-Pay receivables.
On August 5, 2016, Qurate Retail Group, Inc announced its financial results for the second quarter ended June 30, 2016, in which the Company disclosed "significant headwinds" and sales declines as compared to prior periods. Later that day, during the Company's Second Quarter 2016 Earnings Call with analysts and investors, 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 September 8, 2016, during a Goldman Sachs Global Retailing Conerence in New York City, Qurate Retail Group, Inc disclosed the impact of the Easy Pay issues, revealing to investors that it expects to see "higher default rates" associated with these sales.
The plaintiff claims that between August 5, 2015, and September 7, 2016, the Defendants failed to disclose that Qurate Retail Group, Inc was aggressively loosening the credit standards of its Easy-Pay program to attract a large group of new customers, that Qurate Retail Group, Inc's strong sales growth was due to this loose credit policy, that accounts receivable associated with this new group of customers posed a high risk of write-off, and that as a result of the foregoing, the Company's positive statements about its business, operations, and prospects lacked a reasonable basis.
Those who purchased shares of Qurate Retail Group, Inc. (NASDAQ: QRTEA) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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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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