The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Party City Holdco Inc. (PRTY, PRTYQ) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Party City Holdco Inc. (“Party City” or the “Company”) (NYSE: PRTY; OTC: PRTYQ) securities between November 8, 2022 and June 9, 2023, inclusive (the “Class Period”). Party City investors have until October 2, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On January 17, 2023, Party City abruptly filed for bankruptcy, disclosing the Company’s ongoing liquidity shortfall, its need for loans beyond credit lines available, and its inability to find lenders willing to provide those loans.

On June 9, 2023, Party City further revealed that its audit firm had resigned due to a disagreement about the Company’s decision to not include a “going concern” warning in its third quarter 2022 financial report, which would have alerted investors to the Company’s potential inability to continue as a going concern. Furthermore, the Company also disclosed that there was a “material weakness in internal control over financial reporting” at the time of the third quarter 2022 10-Q.

As a result of these revelations, investors suffered significant losses.

The complaint filed in this class action 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: (1) affirmatively misrepresented that its capital resources “will be adequate to meet our liquidity needs for at least the next 12 months”; (2) omitted that there was substantial doubt about the Company’s ability to continue as a going concern; (3) downplayed the nature and extent of the Company’s then-existing liquidity problems; (4) omitted that the Company’s existing credit facilities were insufficient to satisfy its operational needs and that it was unable to obtain additional loans in the normal course of business; (5) omitted that there was a material weakness in its internal control over financial reporting; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Party City securities during the Class Period, you may move the Court no later than October 2, 2023 to ask the Court to appoint you as lead plaintiff.  To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.  If you purchased Party City securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.  If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Party City Holdco Inc. (PRTY, PRTYQ) Investors