FTD Companies Inc (NASDAQ: FTD) Investor Securities Class Action Lawsuit 03/20/2017

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Company Name(s): 
FTD Companies
Case Name: 
FTD Companies Shareholder Class Action Lawsuit 03/20/2017
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: FTD
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/20/2017
Class Period Begin: 
03/13/2015
Class Period End: 
03/14/2017
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
05/19/2017
Summary: 

March 20, 2017 - An investor in shares of FTD Companies Inc (NASDAQ: FTD) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by FTD Companies Inc in connection with certain allegedly false and misleading statements made between March 13, 2015 and March 14, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of FTD Companies Inc (NASDAQ: FTD) common shares between March 13, 2015 and March 14, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 13, 2015 and March 14, 2017, the defendants made false and/or misleading statements and/or failed to disclose that FTD Companies Inc’s financial statements contained errors relating to the assessment of cross-border indirect taxes, that in turn, the Company lacked effective internal controls over financial reporting, that FTD Companies Inc had overstated the benefits of the Provide acquisition, and that as a result of the foregoing, FTD Companies Inc’s public statements were materially false and misleading at all relevant times.

Downers Grove, IL based FTD Companies Inc is a floral and gifting company. On March 14, 2017, FTD Companies Inc announced its fourth quarter and full year 2016 financial results. FTD Companies Inc reported that its annual Total Revenue declined from over $1.21 billion in 2015 to over $1.12 billion in 2016 and that its Net Loss increased from $80.14 million in 2015 to $83.19 million in 2016. Among other things, FTD Companies Inc disclosed that it had identified “errors” relating to “the assessment of cross-border indirect taxes.” FTD Companies Inc further disclosed that, as a result of the errors, it would revise its previously-reported consolidated financial statements for the years ended December 31, 2015 and 2014 and for the quarters in the years ended December 31, 2015 and 2016.

Shares of FTD Companies Inc (NASDAQ: FTD) declined on March 15, 2017 to as low as $17.76 per share.