Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Costco Wholesale Corporation To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Costco Wholesale Corporation (“Costco” or the “Company”) (NASDAQ:COST) of the January 7, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Costco stock or options between June 6, 2018 and October 25, 2018 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Western District of Washington on behalf of all those who purchased Costco common stock between June 6, 2018 and October 25, 2018 (the “Class Period”). The case, Johnson v. Costco Wholesale Corporation et al, No. 18-cv-01611 was filed on November 5, 2018 and has been assigned to Judge Thomas Samuel Zilly.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Costco lacked effective internal control over financial reporting; and (2) as a result of the foregoing, Defendants’ statements about Costco’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on October 4, 2018, Costco issued a press release in connection with a Form 8-K filed with the Securities and Exchange Commission (“SEC”), which disclosed that the Company was “still completing its assessment of the effectiveness of its internal control over financial reporting as of September 2, 2018” and that the Company expected a “weakness in internal control” for its fiscal 2018 Annual Report.
On this news, the Company's stock price fell from $231.68 per share on October 4, 2018 to $218.82 per share on October 5, 2018—a $12.86 or 5.55% drop.
Then, on October 26, 2018, Costco filed a Form 10-K with the SEC announcing the Company’s financial and operating results for the fiscal fourth quarter and fiscal year ended September 2, 2018. Therein, Costco stated in pertinent part: “We identified a material weakness in internal control related to ineffective information technology general controls (ITGCs) in the areas of user access and program change-management over certain information technology (IT) systems that support the Company’s financial reporting processes.”
On this news, the Company's stock price fell from $226.40 per share on October 25, 2018 to $218.19 per share on October 26, 2018—an $8.21 or 3.63% drop.
Costco Wholesale Corporation (COST)
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Filed on 11/07/2018
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