Great Atlantic & Pacific Tea Company, Inc. Securities Lawsuit Investigation

Securities Lawsuit Investigation | Company: Great Atlantic & Pacific Tea Company | For: Misleading Sales Forecasts, Failure to Disclose Information, Artificially Inflated Stock Prices

Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Great Atlantic & Pacific Tea Company, Inc. (“A&P”) and certain of its officers and directors violated the Securities Exchange Act 1934. A&P was founded in 1859 and currently operates conventional supermarkets, combination food and drug stores and discount food stores.

For over 30 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm focuses on cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of Great Atlantic & Pacific Tea Company, Inc. (NYSE: GAP), during the period between July 23, 2009 and December 10, 2010, and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than November 8, 2011 to discuss your rights, including as to recovery of your losses or to obtain additional information.

Misleading Sales Forecasts

A class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of the securities of A&P. The suit alleges that A&P issued false and misleading statements regarding the Company’s true financial condition, business and prospects. Defendants repeatedly assured investors that A&P was well positioned for long-term growth overtime and the new capital it raised would significantly strengthen the Company as well as accelerate the turnaround time of its Pathmark’s operations.

Failure to Disclose Information

The Complaint alleges that Defendants failed to disclose material information to the investing public that A&P was facing increased low-cost competition from retailers such as Wal-Mart and Target Corp., which was negatively impacting the Company’s business and financial condition. A&P allegedly failed to disclose that the Pathmark acquisition was a complete disaster for the Company as Pathmark’s operations were in far worse condition than had been represented to investors. The suit further alleges that A&P was not operating according to internal expectations and could not achieve the guidance sponsored and/or endorsed by Defendants. A&P also failed to disclose that Defendants lacks a reasonable basis for their positive statements about the Company, operations and prospects.

Artificially Inflated Stock Prices

A&P’s misleading sales projections in combination with its failure to disclose negative business trends, lead to artificially inflated prices during the Class Period. On December 10, 2010, A&P issued a press release which shocked investors and reported that the Company was performing well below expectations and they would likely be forced to file for bankruptcy. After this alarming news was released, shares of A&P dropped dramatically.

Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of A&P’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.