HD Supply (NASDAQ: HDS), Atlanta, GA, is facing a class action lawsuit that alleges the company "made materially false and misleading statements about the company’s compliance, operational and business policies."
Glancy Prongay & Murray LLP filed the lawsuit on behalf of investors who purchased or otherwise acquired company securities between Nov. 9, 2016, and June 5, 2017.
The complaint alleges that HD Supply issued false and/or misleading statements and/or failed to disclose that:
- Its full-year 2017 growth and operational leverage targets were unattainable;
- The operational recovery of its facilities maintenance supply chain was not going according to plan;
- The company was exploring the sale of its waterworks segment (it announced the sale on June 6, the same day it released first-quarter earnings;
- President and CEO Joe DeAngelo knew of "undisclosed materially adverse facts alleged herein, embarked on a selling spree of personal holdings of HD Supply stock that netted him over $54 million in proceeds"; and,
- Defendants’ statements about the company's business, operations and prospects were false and misleading and/or lacked a reasonable basis.
HD Supply said it wouldn’t comment on litigation matters.