Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Costco Wholesale Corporation (“Costco”) (NASDAQ: COST) securities between June 7, 2018 and October 25, 2018, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Costco would need to undertake a vast effort and expend significant resources to transform its IT department into one that would be capable of supporting the necessary internal controls; (2) that there was significant risk that Costco’s reporting data would be inaccurate, especially until the issue was fully remediated; (3) that Costco could be subject to governmental or regulatory action regarding its internal controls and treatment of data; and (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On August 19, 2020, the Court granted Defendants’ Motion to Dismiss. On September 17, 2020, Lead Plaintiffs filed Notice of Appeal to the Ninth Circuit Court of Appeals, and on August 12, 2021, the Appeals Court affirmed the Trial Court’s dismissal. This action has concluded.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.