SAN FRANCISCO--(EON: Enhanced Online News)--Hagens Berman Sobol Shapiro LLP alerts StoneMor Partners, L.P. (NYSE: STON) investors that the January 20, 2017, Lead Plaintiff deadline in the securities class action against StoneMor is fast approaching.
“no longer be able to provide Adjusted EBITDA as a performance metric within future earnings releases.”
If you purchased or otherwise acquired StoneMor units between January 19, 2012, and October 27, 2016, and suffered over $200,000 in losses, contact Hagens Berman Sobol Shapiro LLP. For more information visit:
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing STON@hbsslaw.com.
StoneMor disclosed on October 27, 2016, that investors should not rely on the Company’s financial statements issued between 2013 and the second quarter of 2016. The Company also slashed its quarterly distribution to common unit investors by 50%. This news caused the price of StoneMor units to drop nearly 45% to close at $13.74 on October 28, 2016.
Then, on October 31, 2016, SeekingAlpha published a report which concluded that StoneMor issued dilutive stock to new investors to pay old investors – the hallmarks of a Ponzi Scheme.
On November 9, 2016, StoneMor disclosed its intention to restate 2014 and 2015 annual financial statements and certain interim financial reports. After extensively using Adjusted EBITDA to highlight the Company’s performance, StoneMor’s CFO (Seth McGrath) disclosed that the Company would “no longer be able to provide Adjusted EBITDA as a performance metric within future earnings releases.”
“We’re investigating StoneMor’s improper accounting, its use of non-GAAP financial metrics, and why new investor funds were allegedly used to pay other StoneMor investors,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding StoneMor should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email STON@hbsslaw.com.
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington, with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter, and visit the blog. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.