Bed Bath and Beyond Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Bed Bath and Beyond Inc. (“Bed Bath & Beyond” or the “Company”) (NASDAQ: BBBY) securities during the period from October 2, 2019 through February 11, 2020 (the “Class Period”). Investors have until June 15, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Bed Bath & Beyond failed to disclose that: (i) due to “aggressive disposition of inventory,” the Company lacked sufficient inventory in key categories to support holiday sales; (ii) the Company’s internal control over inventory levels and financial reporting was not effective; and (iii) as a result of the foregoing, the Company was likely to experience reduced sales.
On January 8, 2020, Bed Bath & Beyond withdrew its fiscal 2019 guidance, purportedly due to pressures on sales and profitability, as well as a new strategic plan for the Company’s operations. On this news, the Company’s share price fell $3.20, or 19.2%, to close at $13.4 per share on January 9, 2020.
On February 11, 2020, Bed Bath & Beyond issued a press release announcing preliminary fourth-quarter 2019 financial results. Therein, the Company disclosed “a 5.4% decline in comparable sales driven primarily by store traffic declines combined with inventory management issues,” including that “inventory within certain key categories in the Bed Bath & Beyond assortment was too low or out-of-stock during the period.” On this news, the Company’s share price fell $3.06, or 20.6%, to close at $11.79 per share on February 12, 2020.
If you acquired Bed Bath & Beyond securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.