Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Party City Holdco Inc. (“Party City” or the “Company”) (NYSE: PRTY; OTC: PRTYQ) securities between November 8, 2022 and June 9, 2023, inclusive (the “Class Period”). Party City investors have until October 2, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Party City investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On January 17, 2023, Party City abruptly filed for bankruptcy, disclosing the Company’s ongoing liquidity shortfall, its need for loans beyond credit lines available, and its inability to find lenders willing to provide those loans.
On June 9, 2023, Party City further revealed that its audit firm had resigned due to a disagreement about the Company’s decision to not include a “going concern” warning in its third quarter 2022 financial report, which would have alerted investors to the Company’s potential inability to continue as a going concern. Furthermore, the Company also disclosed that there was a “material weakness in internal control over financial reporting” at the time of the third quarter 2022 10-Q.
As a result of these revelations, investors suffered significant losses.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants: (1) affirmatively misrepresented that its capital resources “will be adequate to meet our liquidity needs for at least the next 12 months”; (2) omitted that there was substantial doubt about the Company’s ability to continue as a going concern; (3) downplayed the nature and extent of the Company’s then-existing liquidity problems; (4) omitted that the Company’s existing credit facilities were insufficient to satisfy its operational needs and that it was unable to obtain additional loans in the normal course of business; (5) omitted that there was a material weakness in its internal control over financial reporting; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Party City securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230807111239/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
