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 National Vision Holdings, Inc. (“National Vision” or the “Company”) (NASDAQ: EYE) common stock between May 13, 2021 and May 9, 2022, inclusive (the “Class Period”). National Vision investors have until March 28, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On November 10, 2021, in connection with its third quarter 2021 financial results, National Vision tightened its fiscal 2021 sales outlook (but did not change its earnings guidance), indicating that the Company was suffering from a substantial deterioration in profit margins during fourth quarter 2021.
On this news, the Company’s stock price fell $8.30, or 13%, to close at $55.22 per share on November 10, 2021, thereby injuring investors.
Then, on May 9, 2022, National Vision issued its first quarter 2022 financial results, disclosing that the Company’s net revenues had decreased 1.2% to $527.7 million, its adjusted CSS had fallen 6.8%, net income had decreased 30.6% to $30.1 million, and its diluted EPS had decreased 28.2% to $0.34. The Company also adjusted its 2022 outlook, indicating that it was performing worse in terms of profits and earnings than before the pandemic.
On this news, National Vision’s stock price fell $8.34, or 25.7%, to close at $24.93 per share on May 10, 2022, thereby injuring investors further.
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 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; (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; 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 National Vision common stock during the Class Period, you may move the Court no later than March 28, 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 National Vision common stock, 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, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, 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.
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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of National Vision Holdings, Inc. (EYE) Investors
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007