Gilman Law LLP, A National Law Firm Representing Victims of Securities Fraud, Is Actively Investigating A Class Action Lawsuit On Behalf of Investors of Primo Water Corporation
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Primo Water Corporation (“Primo Water” or the “Company”) and certain of its officers and directors made materially false and misleading statements or failed to disclose material information related to the company’s business and operations in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1940 and Rule 10-5 promulgated thereunder.
If you purchased or otherwise acquired the stock of Primo Water (NASDAQ:PRMW) in or traceable to the Company’s initial public offering on or about November 4, 2010 (the “IPO”) and the Company’s offering of common stock on or about June 17, 2011 (collectively, the “Offerings”), as well as purchasers of the Company’s common stock between November 4, 2010 and August 10, 2011, inclusive (the “Class Period”) and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP by January 31, 2012 to discuss your rights, including as to recovery of your losses or to obtain additional information.
Primo Water, through its subsidiaries, provides multi-gallon purified bottled water, self-serve filtered drinking water, and water dispensers in the United States and Canada.
The Primo Water shareholder class action lawsuit alleges that during the Class Period, the Company failed to disclose that neither demand nor sales of the Company’s products were as robust as represented and stores owned by the Company’s largest retail customers did not carry the Company’s products so the Company was not generating any revenue from those locations. The suit further alleges that the Company’s growth and business prospects were heavily dependent upon the ability of the Company’s two largest customers to sell products from other, unrelated companies before those customers would order products from Primo Water. Primo Water also failed to disclosure that the Company’s primary retail customers would not be in position to order any of the Company’s products until after those retail customers cleared out other inventory sitting on their shelves, including inventory related to products sold by competitors to the Company. The Complaint further alleges that the Company’s largest retail customers had delayed promotions of the Company’s products, which negatively impacted the Company’s sales. Thus, the Company’s growth rate had slowed and would be slower for the rest of 2011, if not beyond; and the Company would not meet the financial guidance it provided to investors.
On August 10, 2011, before the stock market opened, the Company issued a press release announcing its financial results for the second quarter of 2011 wherein it reported a net loss of $2 million. Primo Water also revised its financial projections downward for the third and fourth quarters of 2011. As a result of this news, Primo Water’s shares dropped 61% from the previous day’s close of $13.92 per share, to close at $5.40 per share on August 10, 2011, on very heavy trading volume.
If you wish to join the Primo Water class action lawsuit filed in the U.S. District Court for the Middle District of North Carolina, please e complete the online form or contact Gilman Law LLP at (888) 252-0048.
For over 40 years, the lawyers at Gilman Law have extensive experience representing both individual and institutional investors in securities have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. Gilman Law is ready to assist investors nationwide who have sustained losses as a result of Primo Water’s alleged fraud. For a free evaluation of your case, please complete the free consultation form contact Gilman Law TOLL FREE at (888) 252-0048.