Securities Lawsuit Investigation | Company: Great Atlantic & Pacific Tea Company | For: Misleading Sales Forecasts, Failure to Disclose Information, Artificially Inflated Stock Prices
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Great Atlantic & Pacific Tea Company, Inc. (“A&P”) violated the Securities Exchange Act. The lawyers at Gilman Law have extensive experience handling all aspects of securities fraud litigation. If you are or were a stakeholder in A& P (NYSE:GAP), who purchased shares between July 23, 2009 and December 10 2010, and believe that you were defrauded, Gilman Law will fight for you.
You may also be entitled to a PSLRA claim. PSLRA claims need to be filed by no later than November 22, 2011.
Misleading Sales Forecasts of Great Atlantic & Pacific Tea Company, Inc.
The shareholder class action suit alleges that Montvale, New Jersey- based Greater Atlantic & Pacific Tea Company, which trades on the NYSE with the ticker GAP, issued false and misleading statements regarding its business and financial results. Great Atlantic & Pacific, which was founded in 1859 and currently operates conventional supermarkets, combination food and drug stores and discount food stores, repeatedly assured investors that they were well positioned for long-term growth. Great Atlantic & Pacific also stated that the new capital it raised would significantly strengthen the company as well as accelerate the turnaround time of its recently acquired Pathmark operations.
Failure to Disclose Material Information To The Investing Public
The shareholder lawsuit also alleges that A&P failed to disclose material information to the investing public . A&P did not report that it was facing increased competition from low-cost retailers such as Wal-Mart and Target Corp. A&P also allegedly failed to disclose problems with its acquisition of Pathmark such as the fact that Pathmark’s business operations were in far worse condition than had been represented to investors.
Artificially Inflated Stock Prices for Great Atlantic & Pacific Tea Company, Inc.
A&P’s misleading sales projections in combination with its failure to disclose negative business trends, lead to the artificial inflation of its stock price during the class action period. On December 10, 2010, A&P reported earnings that were far below analysts’ expectations and well below all prior guidance from the supermarket company. A&P also stated that it would most likely be forced to file for bankruptcy. This resulted in a dramatic drop in the stock price from $2.82 on Dec. 10, 2010 to $0.35 on Dec. 13, 2010, the first trading day after the bankruptcy announcement.
Gilman Law LLP is one of the country’s premier national law firms that represents institutional and individual investors in class actions, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or call Toll Free 1-888-252-0048.
Gilman Law Offices
16 Fourteenth Avenue
Wareham, MA 02571