Scott+Scott Attorneys at Law LLP (Scott+Scott), a national shareholder and consumer rights litigation firm, reminds investors that a class action lawsuit has been filed against Wayfair Inc. (Wayfair or the Company) (NYSE:W) and other defendants, related to alleged violations of federal securities laws. If you purchased Wayfair common stock between August 2, 2018 and October 31, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information. The lead plaintiff deadline is March 11, 2019.
The lawsuit alleges that defendants made false and misleading statements and/or failed to disclose adverse information regarding Wayfairs business and prospects, including that Wayfair had been experiencing significantly diminished demand for its online product offerings and had significantly increased advertising spending to increase sales. As a result, the price of Wayfair stock was artificially inflated. In addition, during that time, certain of Wayfairs senior executives and directors sold more than $87.75 million of their personally held shares.
On November 1, 2018, pre-market, Wayfair issued a press release announcing its third quarter 2018 financial results. The Company reported a large $151.7 million GAAP net loss for the quarter, or $(1.69) per share, compared with a GAAP loss of $76.4 million, or $(0.88) per share, for the third quarter of 2017. Advertising expenses had skyrocketed to more than $202.5 million, an increase of 43%.
On this news, the price of Wayfair stock dropped nearly 13% to close at $96.16 per share on November 1, 2018.
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What You Can Do
If you purchased Wayfair stock between August 2, 2018 and October 31, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.