CASES
The Great Atlantic & Pacific Tea Company, Inc.
Class Period: Jul 22, 2009 to Dec 10, 2010
Lead Plaintiff Deadline: Nov 8, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against The Great Atlantic & Pacific Tea Company, Inc. ("A&P" or the "Company") on behalf of all persons who purchased or otherwise acquired the securities of A&P between July 23, 2009 to December 10, 2010. This case has been filed in the USDC - New Jersey.
The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the defendants failed to disclose the following adverse facts, among others: (i) that A&P was facing increased low-cost competition from retailers such as Wal-Mart and Target Corp., which was negatively impacting the Company's business and financial condition; (ii) that the Pathmark acquisition was a complete disaster for the Company as Pathmark's operations were in far worse condition than had been represented to investors; (iii) that A&P was not operating according to internal expectations and could not achieve the guidance sponsored and/or endorsed by defendants; and (iv) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its operations and prospects.
On July 23, 2010, A&P issued a press release announcing its fiscal 2010 first quarter results and that the Company had launched a "turnaround," designed to strengthen A&P's operating and financial foundation. On August 13, 2010, A&P announced the closing of certain stores as part of the Company's operational and revenue-driven turnaround initiative, the purported Turnaround Strategy, designed to generate sustained profitability and cash flow, drive sales growth, restore competitive margins to the business and strengthen the foundation of the Company for the long term. Then on December 10, 2010, A&P shocked investors after revealing, for the first time, that the Company was performing so far below expectations and the purported Turnaround Strategy was failing so miserably that the Company would likely be forced to file for bankruptcy protection. In response to this announcement, the price of A&P securities declined precipitously.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.