LOS ANGELES, — The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Costco Wholesale Corporation (“Costco” or “the Company”) (NASDAQ: COST) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s shares between June 6, 2018 and October 25, 2018, inclusive (the ”Class Period”), are encouraged to contact the firm before January 7, 2019.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall, or Sherin Mahdavian, of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 424-303-1964, to discuss your rights free of charge. You can also reach us through the firm’s website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Costco failed to maintain appropriate internal controls over financial reporting. The Company admitted on October 4, 2018, that “in its upcoming fiscal 2018 Annual Report on Form 10-K, it expects to report a material weakness in internal control. The weakness relates to general information technology controls in the areas of user access and program change-management over certain information technology systems that support the Company’s financial reporting processes. The access issues relate to the extent of privileges afforded users authorized to access company systems.” Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Costco, investors suffered damages.
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The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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