Bed Bath & Beyond Inc. Class Action Lawsuit
- Company Name
- Bed Bath & Beyond Inc.
- Stock Symbol
- Class Period
- October 2, 2019 to February 11, 2020
- District of New Jersey
The Bed Bath & Beyond Inc. class action lawsuit charges Bed Bath & Beyond and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Bed Bath & Beyond securities between October 2, 2019 and February 11, 2020 (the “Class Period”). The Bed Bath & Beyond class action lawsuit was commenced on April 14, 2020 in the District of New Jersey and is captioned Vitiello v. Bed Bath & Beyond Inc., No. 20-cv-04240.
Bed Bath & Beyond is a retailer that sells a wide variety of domestics merchandise and home furnishings under many brand names, including Christmas Tree Shops, Harmon, buybuy BABY, and Cost Plus World Market.
The Bed Bath & Beyond class action lawsuit alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose that, due to “aggressive disposition of inventory,” Bed Bath & Beyond lacked sufficient inventory in key categories to support holiday sales; that Bed Bath & Beyond’s internal control over inventory levels and financial reporting was not effective; and that, as a consequence, Bed Bath & Beyond was likely to experience reduced sales. As a result of this information being withheld from the market, Bed Bath & Beyond securities traded at artificially inflated prices during the Class Period, with Bed Bath & Beyond’s stock price reaching a high of more than $18 per share.
On January 8, 2020, Bed Bath & Beyond withdrew its fiscal 2019 guidance, purportedly due to pressures on sales and profitability as well as a new strategic plan for Bed Bath & Beyond’s operations. On this news, the price of Bed Bath & Beyond’s shares fell $3.20 per share, or more than 19%, to close at $13.40 per share on January 9, 2020.
Then on February 11, 2020, Bed Bath & Beyond issued a press release announcing preliminary fourth quarter 2019 financial results. Therein, Bed Bath & Beyond disclosed “a 5.4% decline in comparable sales driven primarily by store traffic declines combined with inventory management issues,” including that “inventory within certain key categories in the Bed Bath & Beyond assortment was too low or out-of-stock during the period.” On this news, the price of Bed Bath & Beyond’s shares fell $3.06 per share, or more than 20%, to close at $11.79 per share on February 12, 2020.
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