Five Below, Inc.
Robbins Arroyo LLP: Five Below, Inc. (FIVE) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Five Below, Inc. (NASDAQGS: FIVE) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between June 5, 2014 and December 4, 2014. Five Below is a specialty retailer offering various novelty products priced at $5 and below.
Five Below Is Accused of Misleading Investors
Following news that the company was reducing its annual sales and profit forecasts, shares of Five Below declined 21% from the class period high of nearly $48 to close at $37.61 on December 5, 2014, erasing more than $564 million in market capitalization. On that same day, the Chief Executive Officer and Chairman of the Board, both founders of the company, announced their resignation. According to the complaint, the company concealed from investors that the two founders intended to step down from their roles as CEO and Chairman. While concealing this information from investors, Five Below raised its fiscal 2014 sales and earnings guidance twice. The complaint alleges that during this time period, the company’s two founders and its Chief Financial Officer took advantage of the fraudulently inflated stock price and sold $30 million worth of their collective shares.
Five Below Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.