Bed Bath & Beyond Inc. Class Action Lawsuit
- Company Name
- Bed Bath & Beyond Inc.
- Stock Symbol
- Class Period
- October 2, 2019 to February 11, 2020
- Motion Deadline
- June 13, 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.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Bed Bath & Beyond securities during the Class Period to seek appointment as lead plaintiff in the Bed Bath & Beyond class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Bed Bath & Beyond class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Bed Bath & Beyond class action lawsuit. An investor’s ability to share in any potential future recovery of the Bed Bath & Beyond class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Bed Bath & Beyond class action lawsuit or have questions concerning your rights regarding the Bed Bath & Beyond class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Bed Bath & Beyond class action lawsuit must be filed with the court no later than June 13, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.