An investigation on behalf of current long term investors in Five Below Inc (NASDAQ:FIVE) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:FIVE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/24/2015 -- An investigation on behalf of current long-term investors in shares of Five Below Inc (NASDAQ:FIVE) concerning potential breaches of fiduciary duties by certain directors and officers of Five Below Inc was announced.
Investors who purchased shares of Five Below Inc (NASDAQ:FIVE ) in 2013 or earlier and continue to hold any of their NASDSAQ:FIVE shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NASDAQ:FIVE stocks follows a lawsuit filed recently against Five Below Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:FIVE stocks, concerns whether certain Five Below officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Eastern District of Pennsylvania the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that while actively concealing from investors that Five Below Inc's two founders intended to step down from their roles as Chief Executive Officer ("CEO") and Chairman and name as CEO their newly hired President – who was relatively new to Five Below and totally untested in the role of CEO at a publicly traded company – Five Below Inc raised its fiscal 2014 sales and earnings guidance twice, once on June 5, 2014 and then again on September 10, 2014.
The plaintiff alleges that with the price of Five Below Inc common stock increasing on their alleged misrepresentations about Five Below Inc's business metrics and financial prospects, reaching a high of nearly $48 in intraday trading, both of Five Below Inc's founders and its Chief Financial Officer cashed in, selling almost $30 million worth of their personally held shares at fraud-inflated prices.
The plaintiff alleges that on December 4, 2014, Five Below disclosed that its sales growth had diminished and that it was reducing its annual sales and profit forecasts and that same day, Five Below Inc's two founders announced their resignations as CEO and Chairman of Five Below – disclosing that the newly hired President was taking over as CEO.
Shares of Five Below Inc (NASDAQ:FIVE) declined from over $46 per share in November 2014 to as low as $28.51 per share on March 10, 2015.
On March 20, 2015, NASDAQ:FIVE shares closed at $31.86 per share.
Those who purchased shares of Five Below Inc (NASDAQ:FIVE) have certain options and should contact the Shareholders Foundation.
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