Investors can contact the law firm at no cost to learn more about recovering their losses

LOS ANGELES, Aug. 09, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Party City Holdco Inc. (“Party City” or the “Company”) (NYSE: PRTY; OTC: PRTYQ) investors that a lawsuit filed on behalf of investors that purchased Party City securities between November 8, 2022 and June 9, 2023, inclusive (the “Class Period”)

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

On January 17, 2023, Party City suddenly filed for bankruptcy, revealing the Company's ongoing lack of funds, the necessity for loans beyond available credit lines, and the struggle to secure lenders for these loans.

Then, on June 9, 2023, Party City made public that its auditing firm had resigned due to a disagreement regarding the Company's choice to exclude a "going concern" warning from its Q3 2022 financial report. This warning would have alerted investors to the potential risk of Party City's ability to continue its operations. Additionally, the Company acknowledged a "material weakness in internal control over financial reporting" during the third quarter of 2022.

Consequently, these revelations led to substantial losses for investors.

The class action lawsuit argues that during the defined Class Period, the Defendants either presented false or misleading statements or omitted significant negative information about the Company's business, operations, and prospects. More specifically, the Defendants: (1) falsely reassured that the Company had sufficient capital resources for the upcoming year; (2) neglected to mention doubts about the Company's future viability; (3) downplayed the extent of the Company's existing financial problems; (4) failed to disclose the insufficiency of current credit facilities and the inability to obtain normal business loans; (5) omitted details about a significant weakness in internal financial controls; and (6) consequently, the Defendants' optimistic statements about the Company's business, operations, and prospects were substantially misleading and lacked reasonable foundation throughout the relevant time period.

Please visit our website to review more information and submit your transaction information.

The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

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