HD Supply Faces Class Action Lawsuit by Investors

Complaint alleges company misled investors on compliance, operational and business policies.

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:

  1. Its full-year 2017 growth and operational leverage targets were unattainable;
  2. The operational recovery of its facilities maintenance supply chain was not going according to plan;
  3. 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;
  4. 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,
  5. 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.

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.