NEW YORK, NY / ACCESSWIRE / June 23, 2016 / Bronstein, Gewirtz & Grossman, LLC, reminds investors of class action against La Quinta Holdings Inc. ("La Quinta" or the "Company") (NYSE: LQ). The class action has been filed in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased La Quinta securities pursuant to the Company's secondary public offering (the "SPO") on or about March 24, 2015.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The complaint alleges that the Registration Statement and Prospectus issued in connection with the SPO failed to disclose material trends, events and/or uncertainties: (1) La Quinta was suffering a declining customer demand in its key Texas market; (2) there were continuous disruptions caused by the transitioning of La Quinta's call center operations; and (3) La Quinta was suffering a decreasing customer demand and market share losses partially due to some of La Quinta's facilities being out-of-date and in need of major restoration, thereby necessitating that La Quinta make significant capital expenditures and undergo operational disruptions.
The complaint continues to allege that throughout the Class Period, defendants (including certain of its officers and directors, The Blackstone Group L.P. and the lead backers of the SPO) failed to disclose in the Registration Statement and Prospectus issued in connection with the SPO, material adverse facts about the Company's true financial condition, business and prospects. Particularly, Defendants misrepresented and/or failed to disclose: (1) La Quinta was suffering a declining customer demand in its key Texas market; (2) there were continuous disruptions caused by the transitioning of La Quinta's call center operations; and (3) La Quinta was suffering a decreasing customer demand and market share losses partially due to some of La Quinta's facilities being out-of-date and in need of major restoration, thereby necessitating that La Quinta make significant capital expenditures and undergo operational disruptions; (4) that a large number of La Quinta's hotels were in need of major renovation, which would require noteworthy capital expenditures and result in additional operational disruptions; (5) that La Quinta had exaggerated the total buyers were willing to pay for certain of its properties; (6) that (1)-(5) above were sensibly likely to have a material adverse effect on La Quinta's future operating results; and (7) that, based on the above, Defendants lacked a reasonable basis for the La Quinta's 2015 guidance and their positive statements about La Quinta's then-current business and future financial prospects.
On July 29, 2015, La Quinta revealed its financial results for the second quarter of 2015, ended June 30, 2015. La Quinta also reported that its earnings had been unfavorably affected by a $4 million loss on the sale of a property and an approximate $42 million impairment charge associated with the potential sale of 24 Company-owned hotels. Following this news, the company's stock fell approximately 3.5% on July 30, 2015.
On September 17, 2015, post-market, the company announced that the Board of Directors of the Company and Wayne Goldberg had mutually agreed that Mr. Goldberg would step down from his position as Chief Executive Officer of the Company and from any office at any affiliated entity of La Quinta and resign as a member of the Board effective September 15, 2015. Additionally, La Quinta reduced its 2015 revenue per available room guidance following weaker than expected demand in August and September. Following this news, the company's stock fell $2.87, or 15.13%, during intraday trading to trade at $16.10 on September 18, 2015.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website http://www.bgandg.com/#!lq/sspnk. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in La Quinta you have until June 24, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
ReleaseID: 441569
