Five Below(US:FIVE) GlobeNewswire News Room·2024-08-14 16:24Core Viewpoint - Five Below, Inc. is facing a class action securities lawsuit due to alleged securities fraud that misled investors about its financial performance and outlook for 2024 [1][2]. Group 1: Allegations and Financial Misrepresentation - The lawsuit claims that Five Below provided false and materially misleading information regarding its financial strength, including optimistic sales projections for Q1 and the full year of 2024 [2]. - Initially, Five Below projected net sales of $826 million to $846 million for Q1 2024 and $3.97 billion to $4.07 billion for the full year, based on the opening of 55 to 60 new stores in Q1 and 225 to 235 new stores for the year [2]. - On June 5, 2024, Five Below announced disappointing Q1 sales results and revised its full-year guidance down to $3.79 billion to $3.87 billion, leading to a significant stock price drop of $14.07 per share in one day [2]. Group 2: Leadership Changes and Further Declines - Following the disappointing sales announcement, Five Below's CEO Joel Anderson resigned on July 16, 2024, which further impacted investor confidence [2]. - The company projected a decrease of 6% to 7% in comparable sales for the fiscal second quarter ending August 3, 2024, resulting in a stock price decline of over 25% on July 17, 2024 [2]. Group 3: Legal Proceedings and Investor Participation - Investors who suffered losses during the relevant period have until September 30, 2024, to request to be appointed as lead plaintiff in the class action lawsuit [3]. - Participation in the lawsuit does not require any out-of-pocket costs or fees for class members [3]. Group 4: Law Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].