Rosen Law Firm, which positions itself as a ‘global investor rights law firm’, has filed a class action lawsuit on behalf of purchasers of the securities of Wanda Sports Group (NASDAQ: WSG). The lawsuit is ‘pursuant and/or traceable to the registration statement and related prospectus issued in connection with the Wanda Sports July 2019 initial public stock offering (IPO).’
The latest move follows a similar suit filed in recent days by Schall Law Firm, a national shareholder rights litigation firm. This encourages investors with losses in excess of US$100,000 to contact the firm. The Schall suit makes similar claims to that made by Rosen.
According to Rosen Law Firm, the ‘lawsuit seeks to recover damages for Wanda Sports investors under the federal securities laws.’
The lawsuit submitted by Rosen Law Firm cites registration statement documentation in the Wanda Sports IPO. This allegedly ‘featured false and/or misleading statements’. The law firm argued that it failed to disclose that…
(1) the lack of major sporting events for its Digital, Production, Sports Solutions (DPSS) and Spectator Sports segments for its second quarter of 2019, ending before the IPO, would negatively impact revenue for the second quarter of 2019;
(2) Wanda Sports had suffered a year-over-year decrease in revenue in its second quarter ended June 30, 2019 and would for its fiscal year 2019, primarily related to lower reimbursement revenues accounted for in its DPSS segment and lack of Spectator Sport segment offsets; and
(3) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
The class action lawsuit has already been filed. A release from the law firm added… ‘If you wish to serve as lead plaintiff, you must move the Court no later than January 17, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.’