According to the lawsuit, defendants made materially false and misleading statements regarding the Lovesac’s business, operations, and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that:
- Lovesac did not properly account for last mile shipping and freight expenses;
- accordingly, Lovesac’s disclosure controls and procedures and internal control over financial reporting were ineffective and deficient;
- as a result of all the foregoing, Lovesac overstated its gross profit and operating and net income, as well as understated its shipping and handling costs and accrued freight and shipping expenses, in its previously issued financial statements;
- accordingly, Lovesac was likely to restate one or more of its previously issued financial statements; and
- as a result, Lovesac’s public statements were materially false and misleading at all relevant times.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Attorney Advertising. Prior results do not guarantee a similar outcome.