Weight Watchers International, Inc. (NASDAQ: WTW) Investor Securities Class Action Lawsuit 03/04/2019

If you purchased a significant amount of shares of Weight Watchers International, Inc. (NASDAQ: WTW) between May 4, 2018 and February 26, 2019, and / or if you purchased any NASDAQ: WTW shares prior to May 2018and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: May 3, 2019. NASDAQ: WTW investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Weight Watchers
Case Name: 
Weight Watchers Shareholder Class Action Lawsiut 03/04/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: WTW
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/04/2019
Class Period Begin: 
05/04/2018
Class Period End: 
02/26/2019
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
05/03/2019
Summary: 

An investor in shares of Weight Watchers International, Inc. (NASDAQ: WTW) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Weight Watchers International, Inc. in connection with certain allegedly false and misleading statements made between May 4, 2018 and February 26, 2019.

New York based Weight Watchers International, Inc. provides weight management services worldwide.

On November 1, 2018, Weight Watchers International, Inc announced its financial results for the third quarter of 2018, ended September 30, 2018. Weight Watchers International, Inc reported that it had lost 300,000 subscribers in the quarter, bringing its subscriber count down to 4.2 million, causing the Company’s reported net revenues of $366 million to significantly underperform the $379 million defendants had led the market to expect.

On February 26, 2019, Weight Watchers International, Inc announced its fourth quarter and full year 2018 results. Weight Watchers International, Inc. reported that its annual Total Revenue rose from over $1.3 billion in 2017 to over $1.51 billion in 2018 and that its Net Income increased from $163.51 million in in 2017 to $223.74 million in 2018. The fourth quarter subscriber count had fallen again, this time to 3.9 million, and defendants admitted that enrollment would continue declining during fiscal year 2019, with CEO Mindy Grossman conceding that even though January is typically the best time for health-focused brands, January had been a particularly “hard month” for Weight Watchers. Weight Watchers International, Inc said that it was now only targeting revenues of $1.4 billion during fiscal year 2019, nowhere near the $2 billion in annual revenues it had been projecting it would achieve by the end of 2020 and well below the nearly $1.7 billion it had led the market to expect for fiscal year 2019. Weight Watchers also disclosed that it was now only targeting earnings per share of $1.25 to $1.50 for fiscal year 2019, far lower than the $3.36 defendants had led the market to expect.

Shares of Weight Watchers International, Inc. (NASDAQ: WTW) declined from $31.42 per share on February 20, 2019 to as low as $18.80 per share on February 27, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Weight Watchers International, Inc. (NASDAQ: WTW) common shares between May 4, 2018 and February 26, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 4, 2018 and February 26, 2019, the defendants failed to disclose that Weight Watchers International, Inc was experiencing diminished subscriber demand attributable to the onslaught of new competing smartphone fitness apps, meal-delivery services, and other tech advances that were driving down Weight Watchers’ new subscriber growth and its subscriber retention rates; that diminished subscriber growth, when coupled with a much larger number of fourth quarter subscription lapses than Weight Watchers typically experienced, made it highly unlikely that Weight Watchers International, Inc would retain four million subscribers by the end of 2018; that Weight Watchers International, Inc was not on track to grow its subscriber count to five million or to drive annual revenues to more than $2 billion by the end of 2020; and that a decreased subscriber count would result in decreased revenues and profits., and that as a result of defendants’ allegedly false statements and/or omissions, the price of Weight Watchers International, Inc common stock was artificially inflated to more than $103 per share between May 4, 2018 and February 26, 2019.