Securities fraud class action litigation has been filed on behalf of investors in the securities of HD Supply Holdings, (“HD Supply” or the “Company”) (Nasdaq: HDS). If you purchased or otherwise acquired the securities of HD Supply between November 9, 2016 and June 5, 2017, inclusive (the “Relevant Period”), you may move the court for appointment as lead plaintiff by no later than September 11, 2017.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
HD Supply investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
Background on the HD Supply Securities Class Litigation
HD Supply, based in Atlanta, Georgia, HD Supply Holdings, Inc. is one of the largest industrial distributors in North America.
The action alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) HD Supply could not meet its full year 2017 growth and operational leverage targets; (2) the operational recovery of its Facilities Maintenance (“FM”) supply chain was not “on track” as the Company had claimed; and (3) HD Supply was divesting its key Waterworks segment. During the Class Period, when HD Supply’s stock price traded at artificially inflated levels, Defendant Joseph DeAngelo, Chief Executive Officer (“CEO”) and Chair of HD Supply, sold $54 million of his personal Company stock.
In early 2016, HD Supply’s FM segment experienced supply chain issues leading to a large build-up of inventory at HD Supply’s distribution centers. The Company took remedial actions to rebalance its inventory throughout the country. Defendants claimed in November 2016 that the FM recovery was “on track” and that HD Supply was “perfectly positioned to enter 2017 and deliver on [its] commitments of 300 basis points more than market, one-and-a-half times operating leverage and 75% cash generation.”’
On June 6, 2017, HD Supply reported disappointing Q1 2017 earnings and that it had agreed to sell Waterworks, the nation’s largest distributor of water, sewer, storm and fire protection products and a key business segment for HD Supply. The Company also announced increased capital investments in its FM segment, so it had to reduce its operating leverage targets for 2017. On this news, HD Supply’s share price declined $7.24 per share, or 17.5%, from a close of $41.27 per share on June 5, 2017 to a close of $34.03 per share on June 6, 2017, on extremely heavy trading volume. The following day, HD Supply’s share price dropped an additional $1.22 per share, for a total two-day drop of 20.49%.
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