The Complaint brings forth claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) HD Supply’s full year 2017 growth and operational leverage targets were unattainable; (2) the operational recovery of its Facilities Maintenance supply chain was not going according to plan; (3) the Company was exploring the sale of its Waterworks segment; (4) Defendant Joseph DeAngelo, with full knowledge of the undisclosed materially adverse facts alleged herein, embarked on a selling spree of personal holdings of HD Supply stock that netted him over $54 million in proceeds; and (5) as a result of the foregoing, Defendants’ statements about HD Supply’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On September 11, 2017, the City Pension Fund for Firefighters & Police Officers in the City of Miami Beach, Pembroke Pines Pension Fund for Firefighters and Police Officers and Hollywood Police Officers’ Retirement System moved for appointment as Co-Lead Plaintiffs. On October 19, 2017, the Court consolidated the action and appointed the Funds’ as Lead Plaintiffs and approved the selection of Saxena White as Lead Counsel.
Lead Plaintiffs filed an Amended Complaint on November 16, 2017. On December 21, 2017, Defendants moved to dismiss the Amended Complaint. Lead Plaintiffs filed their opposition to the motion on February 1, 2018 and, later that month, Defendants filed their reply brief. The Court has not scheduled oral arguments on the pending motion.
On September 19, 2018, the Court denied in large part Defendants’ Motion to Dismiss. The Court rejected the company’s arguments that investor claims were generalized allegations and instead, found that Plaintiffs provided specific examples of misleading statements.
On November 5, 2018, Defendants filed their Answer to the Amended Complaint.
On December 6, 2018, the Court entered a scheduling order for discovery. On March 1, 2019, Lead Plaintiffs filed a Motion for Class Certification. Defendants filed their Opposition to Lead Plaintiffs’ Motion for Class Certification on June 17, 2019, and Plaintiffs filed their Reply on August 2, 2019.