RADNOR, Pa., March 17, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of purchasers of the securities of Best Buy Co., Inc. ("Best Buy" or the "Company"), who purchased or otherwise acquired Best Buy securities between September 14, 2010 and December 13, 2010, inclusive (the "Class Period"). If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.btkmc.com/cases/bestbuy/.
Members of the class may, not later than April 19, 2011, move the Court to serve as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com. For additional information about this lawsuit, or to join the class action online, please visit http://www.btkmc.com/cases/bestbuy/.
The Complaint charges Best Buy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Best Buy is a multinational retailer of technology and entertainment products and services. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that demand for the Company's electronic products was declining and/or weak; (2) that as a result, the Company would be unable to achieve its fiscal 2011 sales, revenue and earnings forecasts; (3) that the Company's fiscal 2011 earnings forecast could not be achieved without a reduction of SG&A expenses, significant earnings management, and share repurchases; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's statements about its financial well-being and prospects, including its annual earnings per share ("EPS") guidance of $3.70, lacked any reasonable basis when made.
Prior to and throughout the Class Period, Best Buy touted the strong demand for its consumer electronic products and forecasted fiscal year 2011 EPS of up to $3.70. Further, the Company maintained that its 2011 earnings forecast was independent of the impact of the Company's share repurchases. As a result of these positive statements, Best Buy stock closed as high as $44.81 per share during the Class Period.
However, on December 14, 2010, Best Buy astounded investors when it announced its third quarter 2011 results, and disclosed that product sales were declining, and had been declining since June 2010. The Company stated that "newer technologies" had "been slower to take hold," that the notebook market was weaker than expected, that the gaming sector "lagged expectations," and that the Company's top-line growth assumptions "turned out to be too aggressive." Further, the Company drastically lowered its 2011 earnings forecast to a range of between $3.20 to $3.40 per share from its previous range of between $3.55 to $3.70 per share. Moreover, Best Buy disclosed that it had repurchased 11 million shares of Company stock during the quarter (which, when added to prior quarters' share repurchases, means that in the first three quarters of fiscal 2011 it had repurchased over 31 million shares of Company stock). This repurchasing activity would have a $0.12 per share positive impact on Best Buy's lowered fiscal 2011 EPS forecast, indicating that, but for these repurchases, Best Buy would expect lowered fiscal 2011 EPS of as low as $3.08 per share. Upon the release of this news, shares of the Company's stock fell $6.18 per share, or 14.82 percent, to close on December 14, 2010 at $35.52 per share, on unusually heavy trading volume. Best Buy's stock continued to decline the following day, falling an additional $1.02 per share, to close on December 15, 2010 at $34.50 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
Barroway Topaz Kessler Meltzer & CONTACT: Check, LLP Darren J. Check, Esq. David M. Promisloff, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at info@btkmc.com
Barroway Topaz Kessler Meltzer & Check, LLP
CONTACT: Darren J. Check, Esq. or David M. Promisloff, Esq., both of
Barroway Topaz Kessler Meltzer & Check, LLP, 1-888-299-7706 (toll free) or
+1-610-667-7706, info@btkmc.com
Web site: http://www.btkmc.com/
