Qurate investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Qurate markets and sells various consumer products primarily through live merchandise-focused televised shopping programs, websites, and mobile applications. QVC, Inc. (“QVC”) is Qurate’s largest segment, accounting for roughly 85 percent of Qurate’s total revenue in 2016. As a promotional tool used to spur sales, QVC offers a payment plan called Easy-Pay to its customers in the U.S., U.K., Germany and Italy. Easy-Pay allows QVC customers to pay for certain merchandise in two or more monthly installments. Qurate is exposed to the credit risk on the Easy-Pay receivables. Specifically, if the QVC customer does not remit payment for the subsequent Easy-Pay installments, Qurate is required to record a loss and write off the Easy-Pay receivable.
The complaint alleges that on August 5, 2016, Qurate issued a press release announcing financial results for the second quarter ended June 30, 2016, in which Qurate disclosed “significant headwinds” and sales declines as compared to prior periods. Later that day, during Qurate’s Second Quarter 2016 Earnings Call, Qurate disclosed “higher than expected write-offs on Easy-Pay purchases from October and November of last year” and announced increased reserves for prior period purchases. Following this news, Qurate’s stock price fell $5.69 per share, or 21.63 percent, to close on August 5, 2016 at $20.61 per share.
Then, on September 8, 2016, during a Goldman Sachs Global Retailing Conference in New York City, Qurate finally disclosed the true impact of the Easy-Pay issues, revealing to investors that it expects to see “higher default rates” associated with these sales. Moreover, Qurate warned that this negative trend, while improved, would still, continue to impact its business. Following this news, Qurate’s stock price fell $1.87 per share, or 8.71 percent, to close on September 8, 2016 at $19.59 per share.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Qurate was aggressively loosening the credit standards of its Easy-Pay program to attract a large group of new customers; (2) Qurate’s strong sales growth was due to this loose credit policy; (3) accounts receivable associated with this new group of customers posed a high risk of write-off; and (4) as a result of the foregoing, Qurate’s positive statements about its business, operations, and prospects lacked a reasonable basis.
If you are a member of the class described above, you may no later than November 5, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.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.
Kessler Topaz Meltzer & Check, LLP
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