Big Lots, Inc. (NYSE:BIG) Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiducary Duties
May 29, 2012 (Shareholders Foundation) -- An investor in NYSE:BIG shares filed a lawsuit against certain directors and officers of Big Lots, Inc over alleged breaches of fiduciary duties in connection with millions of profit from allegedly illegal insider trading.
The plaintiff claims that on March 2, 2012, Big Lots, Inc. issued a press release in which it highlighting “record results” for the fourth quarter of 2011 and fiscal year 2011 and touting positive guidance for its fiscal first quarter of 2012 and fiscal year 2012.
The plaintiff alleges that between March 6, 2012 and March 28, 2012 several of Big Lots’ senior officers and directors sold hundreds of thousands of shares of Big Lots, Inc (NYSE:BIG) common stock in a manner inconsistent with their normal trading patterns, thereby reaping in excess of $37 million in allegedly illegal insider trading proceeds for their personal gain.
Then on April 23, 2012, after the market closed, Big Lots, Inc. provided an update on its First Quarter Sales Guidance. Big Lots, Inc, among other things, said that it expects U.S. comparable store sales to be slightly negative compared to its prior guidance.
Shares of Big Lots, Inc. (NYSE:BIG) fell from $45.65 per share on April 23, 2012 to a close of $34.71 per share on April 24, 2012.
The plaintiff says that the Defendants’ abundant stock sales between March 6, 2012 and March 28, 2012, just after issuing glowing financial results and guidance and just prior to releasing information reversing Big Lots’ previous rosy financial projections, were based on their knowledge of material, non-public information concerning Big Lots’ true financial condition prospects, and thus were in breach of their fiduciary duties as officers and directors of Big Lots.