Cases & Investigations

Weight Watchers International

By Rusty Glenn | August 5, 2019 | Comments Off on Weight Watchers International

DENVER, CO August 5, 2019 – The Shuman Law Firm announces that it is investigating potential shareholder claims against certain officers and directors of Weight watchers International, Inc. (“Weight Watchers” or the “Company”) (Nasdaq: WW). Weight Watchers provides body weight management services worldwide.

The Firm’s investigation relates to the Company’s February 26, 2019 announcement that its quarterly subscriber count had decreased to 3.9 million subscribers with enrollment continuing to decline during FY2019; its FY2019 revenue target was downgraded to $1.4 billion, much less than the nearly market expectation of $1.7 billion; and EPS had decreased to $1.25-$1.50, significantly lower than market expectations of $3.36. On this news, the price of Weight Watchers’ shares fell from a previous close of $29.57 to close at $19.37 per share –or almost 35 percent – on February 27, 2019. In July of 2018, Weight Watchers stock traded above $100 per share.

Following the disclosure of the Company’s February 2019 financial information, investors filed a purported class action lawsuit against Weight Watchers and certain of its senior executive officers and directors. The lawsuit alleges that these defendants made false and/or misleading statements regarding the Company’s subscriber demand, subscriber growth and competition from smartphone fitness apps, meal-delivery services and other high tech advances.

If you currently own Weight Watchers common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com.

Ulta Beauty, Inc.

By Rusty Glenn | May 7, 2019 | Comments Off on Ulta Beauty, Inc.

DENVER, CO May 7, 2019 – The Shuman Law Firm announces that it is investigating potential shareholder claims against certain officers and directors of Ulta Beauty, Inc. (“Ulta” or the “Company”) (Nasdaq: ULTA). Ulta is a beauty retailer.

The Firm’s investigation relates to allegations found in a consumer class action lawsuit against the Company which alleges a wide ranging scheme of repackaging and reselling returned, previously used products as new products in Ulta stores. The lawsuit specifically alleges that “dozens of…Ulta employees from retail locations all over the country confirmed that substantially similar practices also occurred at the Ulta stores where they worked.” On February 23, 2018, CBS News published a story on its website entitled “Former Ulta Beauty employee says she felt pressured to resell used products”. The CBS story reports on the claims that used products were cleaned and repackaged because “higher-level managers pressured the stores to keep the dollar amount for damaged or returned goods down.” These actions allegedly occurred despite Ulta’ “Returned Merchandise Policy” which clearly prohibited the resale of used, damaged or expired products. The Company’s stock price fell more than 10% following the revelation of these events.

If you currently own Ulta Beauty common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.

OneMain Holdings, Inc.

By Rusty Glenn | May 7, 2019 | Comments Off on OneMain Holdings, Inc.

DENVER, CO May 7, 2019 – The Shuman Law Firm announces that it is investigating potential shareholder claims against certain officers and directors of OneMain Holdings, Inc. (“OneMain” or the “Company”) (NYSE: OMF). OneMain is a consumer finance and insurance company.

The Firm’s investigation relates to allegations found in a lawsuit that OneMain violated federal securities laws in relation to its merger with Springleaf Holdings, Inc. In particular, the plaintiff alleges that the defendants misstated the purported synergies achieved by the combined company. On November 7, 2016, the Company announced concerns related to the merger integration, disappointing third-quarter results and disclosed that it was lowering guidance for full-year 2016 and 2017. OneMain’s stock fell from $28.34 per share to a close of $16.90 per share (or more than 35%) following this news. The Company recently announced that it had settled these federal securities claims for $9 million.

If you currently own OneMain common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.

Farmland Partners Inc.

By Rusty Glenn | March 27, 2019 | Comments Off on Farmland Partners Inc.

DENVER, CO March 27, 2019 – The Shuman Law Firm announces that it is investigating potential shareholder claims against certain officers and directors of Farmland Partners Inc. (“FPI” or the “Company”) (NYSE: FPI). FPI is a real estate investment trust (REIT) based in Denver, CO, specializing in North American farmland properties and loans to farmers secured with farmland.

In February 2017, FPI completed its stock and cash acquisition of American Farmland Co. (“AFCO”), another farming REIT, and in connection therewith issued approximately 14.5 million new shares of FPI common stock directly to AFCO shareholders as follows: Each share of AFCO common stock was converted automatically into the right to receive 0.7417 shares of newly issued FPI common stock (plus cash in lieu of fractional shares).

On July 11, 2018, analysts with Rota Fortunae published a report revealing, among other things, that “FPI is artificially increasing revenues by making loans to related-party tenants who round-trip the cash back to FPI as rent,” that “310% of 2017 earnings could be made-up,” that “evidence […] strongly supports FPI has significantly overpaid for properties,” and, moreover, that “FPI has neglected to disclose that the majority of its loans have been made to two members of the management team, including Jesse Hough, CEO Paul Pittman’s long-time business partner.” On this news, FPI’s stock fell over 38% (or $3.37 per share) to close at $5.28 per share on July 11, 2018.

If you are a former AFCO shareholder who acquired FPI common stock pursuant to the February 2017 AFCO acquisition and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.