Big Lots, Inc.
Robbins Umeda LLP Announces an Investigation of Big Lots, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Big Lots, Inc. (NASDAQ: BIG). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP is investigating whether officers and directors of Big Lots breached their fiduciary duties to shareholders by causing the company to incorrectly report guidance related to increases in same store sales. The firm is also investigating whether officers and directors of Big Lots breached their fiduciary duties by failing to maintain effective internal controls over the company’s financial reporting.
Less than two months after issuing optimistic guidance on March 2, 2012, that comparable same store sales would increase by 2% to 4% in fiscal 2012, Big Lots announced on April 23, 2012, that comparable same store sales would instead decrease in 2012. In the time between these statements, certain of the company’s officer and directors sold over $37 million of their Big Lots shares at inflated prices.
Following the company’s downward revision of comparable same store sales guidance on April 23, 2012, the company’s value fell from $45.71 per share on April 23, 2012, to close at $34.71 per share on April 24, 2012, a one day decline of approximately 24%.
Robbins Umeda LLP highlights that Big Lots shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.