Dick’s Bankruptcy Leads to Class Action Lawsuit

By Pomerantz LLP, Special for USDR

Pomerantz LLP announces that a class action lawsuit has been filed against Dick’s Sporting Goods, Inc. (“Dick’s” or the “Company”) (NYSE:  DKS) and certain of its officers.   The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-03680, is on behalf of a class consisting of investors who purchased or otherwise acquired Dick’s securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.

If you are a shareholder who purchased Dick’s securities between March 7, 2017 and May 15, 2017, both dates inclusive, you have until July 17, 2017 to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.

[Click here to join this class action]

Dick’s Sporting Goods, Inc. is a sporting goods retailer that offers a broad selection of brand name sporting goods equipment, apparel, and footwear.  The Company owns and operates Golf Galaxy, Inc., Field & Stream and other specialty chain stores.

Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:  (i) Dick’s had overstated its adjusted EBITDA amounts; (ii) accordingly, the Company lacked effective internal controls; and (iii) as a result of the foregoing, Dick’s public statements were materially false and misleading at all relevant times.

On May 12, 2017, Dick’s issued a Current Report filed on Form 8-K/A with the Securities and Exchange Commission, reporting that a “computation error resulted in a $23.4 million overstatement of Adjusted EBITDA amounts for both the 13 weeks and 52 weeks ended January 28, 2017″.

On this news, Dick’s share price fell $2.62 or 5.22%, over the following two trading days, to close at $47.57 on May 15 ,2017.

On May 16, 2017, Dick’s announced that sales at its existing stores in the first quarter of 2016 had fallen short of forecasts and advised investors that the Company planned to scale back new store openings in 2018 and 2019.

On this news, Dick’s share price fell as much as $6.82, or 14.34%, during intraday trading on May 16, 2017.

The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See  www.pomerantzlaw.com

SOURCE Pomerantz LLP

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.
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