A lawsuit was filed by a current investor in NYSE:LQ shares over alleged breaches of fiduciary duty by certain directors of La Quinta Holdings and NYSE:LQ stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/21/2016 -- A current investor in shares of La Quinta Holdings Inc (NYSE:LQ) filed a lawsuit against certain directors of La Quinta Holdings over alleged breaches of fiduciary duties.
Investors who are current long term investors in La Quinta Holdings Inc (NYSE:LQ) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The lawsuit by a current investor in NYSE:LQ stocks follows a lawsuit filed recently against La Quinta Holdings Inc over alleged securities laws violations. According to that complaint the plaintiff alleges that the Registration Statement and Prospectus issued in connection with the Company's secondary public offering (the "SPO") on or about March 24, 2015 failed to disclose the following material trends, events and/or uncertainties La Quinta Holdings Inc was experiencing declining customer demand in La Quinta's key Texas market, there were on-going disruptions caused by the transitioning of the Company's call center operations, and La Quinta Holdings Inc was experiencing declining customer demand and market share losses due, in part, to certain of La Quinta Holdings Inc's facilities being outdated and in need of major renovation, thereby necessitating that the Company make significant capital expenditures and undergo operational disruptions.
Moreover, the plaintiff alleges that between February 25, 2015 and September 17, 2015, defendants misrepresented and/or failed to disclose, among other things, the following adverse facts that there was a material slowdown in demand for its hotel rooms in its key Texas market between February 25, 2015 and September 17, 2015, that La Quinta Holdings Inc was experiencing disruptions associated with a "transition" of the Company's reservation call center, which was having a material adverse effect on the Company's operations, that La Quinta Holdings Inc was facing market share losses and declining customer demand due, in part, to its outdated facilities, that a significant number of La Quinta's hotels were in need of major renovation, which would require significant capital expenditures and result in operational disruptions, that La Quinta Holdings Inc had overstated the amounts buyers were willing to pay for certain of its properties, that those stated reasons were reasonably likely to have a material adverse effect on La Quinta's future operating results, and that, based on the foregoing, defendants lacked a reasonable basis for the Company's 2015 guidance and their positive statements about La Quinta Holdings Inc's then-current business and future financial prospects.
On July 29, 2015, La Quinta Holdings Inc announced its financial results for the second quarter of 2015, ended June 30, 2015. Among other things, La Quinta Holdings Inc reported that its earnings had been adversely 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.
On September 17, 2015, La Quinta Holdings Inc announced the resignation of CEO Wayne Goldberg, following a "mutual agreement" with the company's board. Additionally, La Quinta reduced its 2015 revenue per available room guidance following weaker than expected demand in August and September. Shares of La Quinta Holdings Inc (NYSE:LQ) declined to as low as $15.69 per share on September 18, 2015.
Those who purchased shares of La Quinta Holdings Inc have certain options and should contact the Shareholders Foundation.
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