Robbins LLP: Dick’s Sporting Goods, Inc. (DKS) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Dick’s Sporting Goods, Inc. (NYSE: DKS) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Dick’s securities between March 7, 2017 and May 15, 2017, for alleged violation of the Securities Exchange Act of 1934 by Dicks’ officers and directors. Dick’s operates as a sporting goods retailer primarily in the eastern United States.
Dick’s Sporting Goods Accused of Grossly Overstating Financial Earnings
According to the complaint, Dick’s generated multiple filings with the U.S. Securities and Exchange Commission and press releases that included a glaring accounting error in the company’s financial reports. While the company gave investors numerous assurances that its internal controls over financial reporting were effective, on May 12, 2017, Dick’s issued a press release announcing that “a computation error resulted in a $23.4 million overstatement of Adjusted EBITDA amounts for both the 13 weeks and 52 weeks ended January 28, 2017.” Then, four days later, Dick’s announced that it would curtail new store openings in 2018 and 2019 due to lower-than-expected sales in its existing stores. On this news, Dick’s stock fell $9.15 per share, or just over 18%, to close at $41.04 per share on May 16, 2017.
Dick’s Sporting Goods Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.