Party City Holdco, Inc. (OTC: PRTY, PRTYQ)
NEW YORK, NY – August 9, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) announces that a class action lawsuit has been filed against Party City Holdco, Inc. (“Party City” or the “Company”) (OTC: PRTY, PRTYQ) in the United States District Court for the District of New Jersey on behalf of all persons and entities who purchased or otherwise acquired Party City securities between November 8, 2022 and June 9, 2023, both dates inclusive (the “Class Period”).
All investors who purchased shares and incurred losses are advised to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774.
If you have incurred losses, you may, no later than October 2, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
After the close of trading on January 17, 2023, Party City filed for bankruptcy protection under Chapter 11. disclosing the Company’s ongoing liquidity shortfall, its need for loans beyond credit lines available, and its inability to find lenders willing to provide those loans.
Following this news, Party City’s stock price declined by 67% over a two-day span from a closing price of $0.374 on January 17, 2023, to $0.121 on January 19, 2023, a decline of $0.253.
On June 9, 2023, Party City further revealed that its audit firm, Ernst & Young LLP resigned due to a disagreement about the Company’s decision to not include a “going concern” warning in its third quarter 2022 financial report, which would have alerted investors to the Company’s potential inability to continue as a going concern. Furthermore, the Company also disclosed that there was a “material weakness in internal control over financial reporting” at the time of the third quarter 2022 10-Q.
Following this news, Party City’s stock price declined by 22% over the next three trading days from a closing price of $0.046 on June 9, 2023 to $0.036 on June 14, 2023.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at firstname.lastname@example.org.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Tel: (800) 575-0735 or (212) 545-4774
Certification and Authorization Pursuant to Federal Securities Laws
Date of signing: 09/27/2023