New York, New York--(Newsfile Corp. - March 10, 2023) - The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Georgia on behalf of those who acquired National Vision Holdings, Inc. ("National Vision" or the "Company") (NASDAQ: EYE) securities during the period from May 13, 2021 through May 9, 2022 (the "Class Period"). Investors have until March 28, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
National Vision operates as an optical retailer, which provides eye exams, eyeglasses, and contact lenses.
On November 10, 2021, National Vision issued a release that announced the Company's financial results for the third quarter of 2021, tightening the Company's sales and revenue outlook towards the upper end of the previously issued 2021 guidance without changing the Company's earnings outlook, indicating that National Vision was suffering from a substantial deterioration in profit margins during the fourth quarter of 2021. On the same day, National Vision held an earnings call with analysts and investors, during which Defendant Patrick Moore, the Chief Financial Officer and senior vice president, admitted that the "lower Q4 profitability" was not due to unforeseen circumstances, but rather in substantial part "due to the impact of the wage investments implemented earlier this year." On this news, the price of National Vision shares declined by $8.30 per share, or approximately 13.07%, from $63.52 per share to close at $55.22 on November 10, 2021.
On May 10, 2022, National Vision issued disappointing financial and operational results for its first fiscal quarter of 2022. Notably, the revised projections indicated that the Company was actually performing worse in terms of profits and earnings than before the pandemic. On this news, the price of National Vision shares declined by $8.64 per share, or approximately 25.74%, from $33.57 per share to close at $24.93 on May 10, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that National Vision was experiencing extraordinary wage and labor pressures as a result of intense competition and disruptions in the labor market due to the COVID-19 pandemic; (2) that National Vision had made a significant multi-million dollar investment in wage and compensation payments to its vision care professionals in order to prevent mass defections in the middle of 2021; (3) that the enhanced payouts were expected to negatively impact the Company's fourth quarter 2021 costs and profit margins to an extent materially greater than what had been disclosed to investors; (4) that, as a result, the Company's profitability metrics were expected to deteriorate below not only favorable 2020 results, but also pre-pandemic levels; and (5) that the Company's recruitment and retention efforts had not been successful and there was a substantial undisclosed risk that National Vision would experience staff and optometrist shortages and capacity constraints.
If you purchased or otherwise acquired National Vision securities, have information, or would like to learn more about this lawsuit, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website: http://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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