HD Supply Holdings, Inc
Robbins Arroyo LLP: HD Supply Holdings, Inc. (HDS) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against HD Supply Holdings, Inc. (NasdaqGM: HDS) in the U.S. District Court for the Northern District of Georgia. The complaint is brought on behalf of all purchasers of HD Supply securities between November 9, 2016 and June 5, 2017, for alleged violations of the Securities Exchange Act of 1934 by HD Supply’s officers and directors. HD Supply operates as an industrial distributor in North America.
HD Supply Accused of Touting Unattainable Growth Targets
According to the complaint, in early 2016, HD Supply’s Facilities Maintenance (“FM”) segment began experiencing supply chain deficiencies. When HD Supply’s management noticed the company’s product shortfall, they adjusted ordering, which led to a massive buildup of inventory. In November 2016, company officials touted that the FM segment was on track and asserted positive projections and a drastic increase in HD Supply’s operating leverage for the second half of 2017. Then, in March and April 2017, HD Supply’s Chief Executive Officer, Joseph J. DeAngelo, disposed of over 1.3 million shares for proceeds of nearly $54 million. On June 6, 2017, HD Supply revealed first quarter 2017 earnings that missed analyst estimates and announced increased capital investments in its FM segment, which in turn forced the company to reduce its operating leverage targets for 2017. On this news, HD Supply’s stock fell $7.24 per share, or 17.5 %, to close at $34.03 per share on June 6, 2017.
HD Supply Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.