Party City Holdco Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On January 17, 2023, Party City suddenly filed for bankruptcy, revealing the Company’s ongoing lack of funds, the necessity for loans beyond available credit lines, and the struggle to secure lenders for these loans.
Then, on June 9, 2023, Party City made public that its auditing firm had resigned due to a disagreement regarding the Company’s choice to exclude a “going concern” warning from its Q3 2022 financial report. This warning would have alerted investors to the potential risk of Party City’s ability to continue its operations. Additionally, the Company acknowledged a “material weakness in internal control over financial reporting” during the third quarter of 2022.
Consequently, these revelations led to substantial losses for investors.
The class action lawsuit argues that during the defined Class Period, the Defendants either presented false or misleading statements or omitted significant negative information about the Company’s business, operations, and prospects. More specifically, the Defendants: (1) falsely reassured that the Company had sufficient capital resources for the upcoming year; (2) neglected to mention doubts about the Company’s future viability; (3) downplayed the extent of the Company’s existing financial problems; (4) failed to disclose the insufficiency of current credit facilities and the inability to obtain normal business loans; (5) omitted details about a significant weakness in internal financial controls; and (6) consequently, the Defendants’ optimistic statements about the Company’s business, operations, and prospects were substantially misleading and lacked reasonable foundation throughout the relevant time period.
