NEW YORK, Sept. 6, 2018 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Weis Markets, Inc. ("Weis" or the "Company") (NYSE: WMK). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Weis and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On September 5, 2018, Spruce Point Capital Management ("Spruce Point") published a report on Weis, asserting that "Weis is obfuscating its financial pressures with aggressive accounting and reduced disclosures that will make its recent share price performance unsustainable." The Spruce Point report noted that "Weis is currently the highest valued supermarket in the stock market, despite negative organic growth, declining gross and EBITDA margins, among the worst returns on capital in the industry, poor governance, and limited information provided by management." Among other issues, the Spruce Point report asserted that its analysis had disproved Weis's claim that its "2017 sales growth was 'primarily' from acquisitions", but instead "show[ed] that core grocery and pharmacy sales declined by 1.1%; and that Weis's April 2018 announcement of "a new $101m capex plan to invest in growth", including the opening of two new stores, "did not disclose to investors that [Weis] would close three stores, resulting in unit stores declining by 1 in 2018." Following publication of the Spruce Point report, Weis's stock price fell $2.39, or 5.18%, to close at $43.71 on September 5, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP