NEW YORK, Dec. 30, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against, Costco Wholesale Corporation (“Costco” or the “Company”) (NASDAQ: COST) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, Seattle Davison, and indexed under 18-cv-01779, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired Costco securities between June 6, 2018 through October 25, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Costco securities between June 6, 2018, and October 25, 2018, both dates inclusive, you have until January 7, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here to join this class action]
Costco engages in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, Spain, France, Iceland and through majority-owned subsidiaries in Taiwan and Korea. As of September 3, 2017, Costco operated 741 warehouses worldwide. Through the membership warehouses, Costco aims at offering low prices on a limited selection of national products in certain categories to produce high sales volumes and rapid inventory turnover.
Given the size of the Company, including its worldwide operations, it is forced to “rely extensively on information technology to process transactions, compile results, and manage [its] businesses.”
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Costco lacked effective internal control over financial reporting; and (ii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On October 4, 2018, Costco issued a press release announcing its financial and operating results for the fiscal fourth quarter and year ended September 2, 2018. In the press release, Costco stated, in part, that “it expects to report a material weakness in internal control”, specifically “relat[ing] to general information technology controls in the areas of user access and program change-management over certain information technology systems that support the Company’s financial reporting processes.”
On this news, Costco’s stock price fell $12.86 per share, or roughly 5.55%, to close at $218.82 per share on October 5, 2018.
Then, on October 26, 2018, Costco filed its annual report for the fiscal fourth quarter and year ended September 2, 2018, which reported that the Company had identified a material weakness as previously described in its October 4, 2018 press release.
On this news, Costco’s stock price fell $8.21 per share, or roughly 3.63%, to close at $218.90 per share on October 26, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
