Faruqi & Faruqi, LLP Announces Investigation of Primo Water Corporation (PRMW)
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Primo Water Corporation (“Primo Water” or the “Company”) (NASDAQ: PRMW).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) demand for Primo Water’s products was weaker than anticipated; (2) Primo Water’s largest retail customers did not carry Company products, resulting in forgone revenue; (3) Primo Water depended on the Company’s two largest customers’ ability to first sell products from other, unrelated companies before those customers would begin ordering products from Primo Water; (4) Primo Water’s largest retail customers postponed the promotion of Company products; (5) the Company’s growth rate had declined in 2011; and (6) the Company would not meet the financial guidance it provided to investors.
On August 10, 2011, Primo Water announced dismal financial results for the second quarter of 2011. The Company reported a net loss of $2 million and also revised downward its financial projections for the third and fourth quarters of 2011. Following the Company’s disappointing announcements, the price of Primo Water shares collapsed from $13.92 on August 9, 2011 to $5.40 on August 10, 2011 – a one day decline of 61% – on extremely heavy volume.
If you purchased Primo Water securities between November 4, 2010 and August 10, 2011 or in any of the Company’s stock offerings and would like to discuss your legal rights, you can contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Primo Water’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.