A lawsuit was filed on behalf of investors in Weight Watchers International, Inc. (NASDAQ: WTW) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/20/2019 -- The Shareholders Foundation announces that an investor, who purchased shares of Weight Watchers International, Inc. (NASDAQ: WTW), filed a lawsuit over alleged violations of Federal Securities Laws by Weight Watchers International, Inc.
Investors who purchased shares of Weight Watchers International, Inc. (NASDAQ: WTW) should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On November 1, 2018, Weight Watchers International, Inc announced its financial results for the third quarter of 2018, ended September 30, 2018. Weight Watchers International, Inc reported that it had lost 300,000 subscribers in the quarter, bringing its subscriber count down to 4.2 million, causing the Company's reported net revenues of $366 million to significantly underperform the $379 million defendants had led the market to expect.
On February 26, 2019, Weight Watchers International, Inc announced its fourth quarter and full year 2018 results. Weight Watchers International, Inc. reported that its annual Total Revenue rose from over $1.3 billion in 2017 to over $1.51 billion in 2018 and that its Net Income increased from $163.51 million in in 2017 to $223.74 million in 2018. The fourth quarter subscriber count had fallen again, this time to 3.9 million, and defendants admitted that enrollment would continue declining during fiscal year 2019, with CEO Mindy Grossman conceding that even though January is typically the best time for health-focused brands, January had been a particularly "hard month" for Weight Watchers. Weight Watchers International, Inc said that it was now only targeting revenues of $1.4 billion during fiscal year 2019, nowhere near the $2 billion in annual revenues it had been projecting it would achieve by the end of 2020 and well below the nearly $1.7 billion it had led the market to expect for fiscal year 2019. Weight Watchers also disclosed that it was now only targeting earnings per share of $1.25 to $1.50 for fiscal year 2019, far lower than the $3.36 defendants had led the market to expect.
The plaintiff claims that between May 4, 2018 and February 26, 2019, the defendants failed to disclose that Weight Watchers International, Inc was experiencing diminished subscriber demand attributable to the onslaught of new competing smartphone fitness apps, meal-delivery services, and other tech advances that were driving down Weight Watchers' new subscriber growth and its subscriber retention rates; that diminished subscriber growth, when coupled with a much larger number of fourth quarter subscription lapses than Weight Watchers typically experienced, made it highly unlikely that Weight Watchers International, Inc would retain four million subscribers by the end of 2018; that Weight Watchers International, Inc was not on track to grow its subscriber count to five million or to drive annual revenues to more than $2 billion by the end of 2020; and that a decreased subscriber count would result in decreased revenues and profits., and that as a result of defendants' allegedly false statements and/or omissions, the price of Weight Watchers International, Inc common stock was artificially inflated to more than $103 per share between May 4, 2018 and February 26, 2019.
Those who purchased shares of Weight Watchers International, Inc. (NASDAQ: WTW) have certain options and should contact the Shareholders Foundation.
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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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