Five Below, Inc.
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST FIVE BELOW, INC.
New York – January 9, 2015 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/fivebelow/) today announced that a class action has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Five Below, Inc. (“Five Below”) (NASDAQ:FIVE) common stock during the period between June 5, 2014 and December 4, 2014 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/fivebelow/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Five Below and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Five Below is a specialty discount retailer targeted at teens and pre-teens that prices all of its clothing and accessories at $5 or below.
The complaint alleges that during the Class Period, the defendants made false and misleading statements or failed to disclose adverse information about Five Below’s business and prospects. Specifically, the complaint alleges that while actively concealing from investors that the Company’s two founders intended to step down from their roles as Chief Executive Officer (“CEO”) and Chairman and name as CEO their newly hired President – who was relatively new to Five Below and totally untested in the role of CEO at a publicly traded company – Five Below raised its fiscal 2014 sales and earnings guidance twice, once at the start of the Class Period on June 5, 2014 and then again on September 10, 2014. With the price of Five Below common stock increasing on their misrepresentations about the Company’s business metrics and financial prospects, reaching a Class Period high of nearly $48 in intraday trading, both of the Company’s founders and its Chief Financial Officer cashed in, selling almost $30 million worth of their personally held shares at fraud-inflated prices.
On December 4, 2014, Five Below disclosed that its sales growth had diminished and that it was reducing its annual sales and profit forecasts. That same day, the Company’s two founders also announced their resignations as CEO and Chairman of Five Below – disclosing that the newly hired President was taking over as CEO. On this news, the price of Five Below stock fell, closing down 21% from its Class Period high.
Plaintiff seeks to recover damages on behalf of all purchasers of Five Below common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld