PRLog - Feb. 22, 2011 - SAN DIEGO -- An investor in shares of Best Buy Co., Inc. (NYSE:BBY) filed a lawsuit in the United States District Court for the District of Minnesota against Best Buy Co., Inc over alleged violations of Federal Securities Laws.
If you purchased Best Buy Co., Inc. (NYSE:
According to the complaint the plaintiff alleges only on behalf of purchasers of Best Buy Co., Inc. (Public, NYSE:BBY) common stock during the period between September 14, 2010 and December 13, 2010, that Best Buy Co., Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 issuing between September 14, 2010 and December 13, 2010 false and misleading statements concerning demand for its consumer electronics product offerings and the Best Buy’s true financial condition.
Best Buy Co., Inc. reported an increase in its 52/53week Total Revenue of almost 40% from from $35.934billion reported on March 3, 2007 to $49.694billion reported on Feb 27, 2010. However, its Net Income decreased over the same time frame from $1.377billion to $1.317billion.
On December 14, 2010, Best Buy Co., Inc. reported its third quarter 2011 financial results. According to the complaint, Best Buy Co., Inc. reported that as product sales it knew to be weak or declining even as early as June 2010 had continued across the board, it had missed Wall Street revenue expectations by a wide margin, reporting $0.54 per share, compared to Wall Street consensus estimates of $0.61. In addition, so the plaintiffis, as a result of weak sales demand and despite the increased FY 2011 earnings forecast in September 2010, Best Buy Co., Inc. reduced its FY 2011 earnings forecast of $3.55-$3.70 to $3.20-$3.40 – well below even the initial FY 2011 earnings forecasts set in March 2010. Finally, Best Buy Co., Inc. disclosed that it had repurchased 11 million shares in the quarter, for a total of more than 31 million shares repurchased during the first three quarters of FY 2011, which would have a $0.12 per share positive impact on the reduced FY 2011 EPS forecast of $3.20-$3.40, so the lawsuit. Shares of Best Buy Co., Inc. traded during 2006 as high as $58.32 per share and fell in 2008 to as low as $17.63 per share. Since then BBY shares increased in April 2010 to $48.58 per share. The plaintiff claims that on this news there was an immediate and massive sell off of Best Buy Co’s shares NYSE:BBY on December 14, 2010, and a stock price decline of 22% from a high of $45.63 per share between September 14, 2010 and December 13, 2010 to close at $35.52 per share on December 14, 2010. Recently NYSE:BBY shares traded at $33.04 per share.
Those who purchased Best Buy Co., Inc. (Public, NYSE:BBY) common stock during the period between September 14, 2010 and December 13, 2010, you have certain options and there are strict and short deadlines running. Deadline: April 15, 2011. Those BBY stockholders and current long term investors in NYSE: BBY shares, including those who purchased BBY shares prior to September 2010 and presently continue to hold those shares, should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
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