An investigation on behalf of current long term investors in Casper Sleep Inc. (NYSE:CSPR) shares over possible breaches of fiduciary duty by certain officers and directors was announced.
San Diego, CA -- (SBWIRE) -- 09/28/2020 -- Certain directors of Casper Sleep Inc. are under investigation over possible breaches of fiduciary duties.
Investors who are current long term investors in Casper Sleep Inc. (NYSE: CSPR) 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 NYSE: CSPR stocks follows a lawsuit filed against Casper Sleep Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE: CSPR stocks, concerns whether certain Casper Sleep 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 New York the plaintiff alleges that the Offering Documents made false and/or misleading statements and/or failed to disclose that Casper's profit margins were actually declining, rather than growing, that Casper was changing an important distribution partner, costing it 130 basis points of gross margin in the first quarter of 2020 alone, that Casper was holding a glut of old and outdated mattress inventory that it was selling at steeply discounted clearance prices, further impairing the Company's profitability, that Casper was suffering accelerating losses, further placing its ability to achieve positive cash flows and profitability out of reach, that Casper's core operations were not profitable, but were causing the Company to suffer over $40 million in negative cash flows during the first quarter of 2020 alone and doubling its quarterly net loss year over year, that as a result of the foregoing, Casper's ability to achieve profitability, implement its growth initiatives, and expand internationally had been misrepresented in the Offering Documents, as the Company needed to shutter its European operations, halt all international expansion, jettison over one fifth of its global corporate workforce, and significantly curtail new store openings in order to avoid an imminent cash and liquidity crisis, let alone achieve positive operating cash flows, and that as a result of the foregoing, Casper's revenue growth rate was not sustainable and had not positioned the Company to achieve profitability.
Those who purchased shares of Casper Sleep Inc. (NYSE: CSPR) have certain options and should contact the Shareholders Foundation.
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