Party City Holdco, Inc. (NYSE: PRTY; OTC: PRTYQ)

This lawsuit is for anyone who acquired securities in Party City Holdco, Inc. (NYSE: PRTY; OTC: PRTYQ) from November 8, 2022 through June 9, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by, among other things, downplaying the nature and extent of the Company’s then-existing liquidity problems.

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 this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, 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. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Party City Holdco, Inc. (NYSE: PRTY; OTC: PRTYQ) from November 8, 2022 through June 9, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.