Ollie’s Bargain Outlet Holdings, Inc. Class Action Lawsuit
- Company Name
- Ollie’s Bargain Outlet Holdings, Inc.
- Stock Symbol
- Class Period
- June 6, 2019 to August 28, 2019
- Motion Deadline
- November 16, 2019
- Southern District of New York
On September 17, 2019, the Ollie’s Bargain Outlet Holdings, Inc. class action lawsuit was filed charging Ollie’s and certain of its officers with violations of the Securities Exchange Act of 1934. The Ollie’s class action lawsuit was commenced in the Southern District of New York on behalf of purchasers of Ollie’s securities between June 6, 2019 and August 28, 2019 (the “Class Period”) and is captioned Stirling v. Ollie's Bargain Outlet Holdings, Inc., No. 1:19-cv-08647.
Ollie’s describes itself as a highly differentiated and fast-growing extreme value retailer of brand name merchandise at drastically reduced prices. Known for its assortment of “Good Stuff Cheap,” Ollie’s offers a broad selection of brand name products, including housewares, food, books and stationery, bed and bath products, floor coverings, toys, and hardware.
The Ollie’s class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about Ollie’s business, operations, and prospects. Specifically, defendants failed to disclose that Ollie’s had suffered a supply chain issue that impacted the initial inventory available at new stores and that, as a result, Ollie’s lacked sufficient inventory to meet demand at certain store locations. As a consequence of the supply chain issue, Ollie’s comparable store sales were likely to be negatively impacted. As a result of this information being withheld from the market, Ollie’s shares traded at artificially inflated prices, with its stock price reaching a high of more than $95 per share.
On August 28, 2019, Ollie’s reported disappointing financial results for the second quarter of 2019, including a 1.7% decrease in comparable store sales, and lowered its fiscal 2019 guidance. In addition, Ollie’s disclosed that a “bottleneck issue” had existed in its supply chain “for most all of” the second quarter and that the bottleneck was not corrected until “the last week of the quarter.” Ollie’s also stated that, “[i]n light of these results and expectations for the remainder of the year, the Company is revising its full-year guidance.” On this news, the price of Ollie’s shares fell $21.41 per share, or over 27%, to close at $56.36 per share on August 29, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Ollie’s securities during the Class Period to seek appointment as lead plaintiff in the Ollie’s class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Ollie’s class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Ollie’s class action lawsuit. An investor’s ability to share in any potential future recovery of the Ollie’s class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Ollie’s class action lawsuit or have questions concerning your rights regarding the Ollie’s class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Ollie’s class action lawsuit must be filed with the court no later than November 16, 2019.
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 six 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.