NEW YORK, Dec. 21, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Connecticut on behalf of all persons or entities who purchased or otherwise acquired The Lovesac Company (“Lovesac” or the “Company”) (NASDAQ: LOVE) securities between March 30, 2023 and August 16, 2023, inclusive (the “Class Period”).
The Complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company did not properly account for last mile shipping and freight expenses; (2) accordingly, the Company’s disclosure controls and procedures and internal control over financial reporting were ineffective and deficient; (3) as a result of all the foregoing, the Company overstated its gross profit and operating and net income, as well as understated its shipping and handling costs and accrued freight and shipping expenses, in its previously issued financial statements; (4) accordingly, the Company was likely to restate one or more of its previously issued financial statements; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Investors who purchased or otherwise acquired shares of Lovesac should contact the Firm prior to the February 20, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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