An investigation was announced for long-term investors in NYSE:LQ shares concerning possible breaches of fiduciary duties by certain directors of La Quinta Holdings Inc.
Investors who are current long term investors in La Quinta Holdings Inc (NYSE:LQ) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The investigation by a law firm for investors in NYSE:LQ stocks follows a lawsuit filed against La Quinta Holdings Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:LQ stocks, concerns whether certain La Quinta Holdings directors are liable in connection with the allegations made in that lawsuit. The plaintiff alleges that the Registration Statement and Prospectus issued in connection with the Company’s secondary public offering (the “SPO”) failed to disclose the following material trends, events and/or uncertainties La Quinta Holdings Inc was experiencing declining customer demand in La Quinta’s key Texas market, there were on-going disruptions caused by the transitioning of the Company’s call center operations, and La Quinta Holdings Inc was experiencing declining customer demand and market share losses due, in part, to certain of La Quinta Holdings Inc’s facilities being outdated and in need of major renovation, thereby necessitating that the Company make significant capital expenditures and undergo operational disruptions. Moreover, the plaintiff alleges that between February 25, 2015 and September 17, 2015, defendants misrepresented and/or failed to disclose, among other things, the following adverse facts that there was a material slowdown in demand for its hotel rooms in its key Texas market between February 25, 2015 and September 17, 2015, that La Quinta Holdings Inc was experiencing disruptions associated with a “transition” of the Company’s reservation call center, which was having a material adverse effect on the Company’s operations, that La Quinta Holdings Inc was facing market share losses and declining customer demand due, in part, to its outdated facilities, that a significant number of La Quinta’s hotels were in need of major renovation, which would require significant capital expenditures and result in operational disruptions, that La Quinta Holdings Inc had overstated the amounts buyers were willing to pay for certain of its properties, that those stated reasons were reasonably likely to have a material adverse effect on La Quinta’s future operating results, and that, based on the foregoing, defendants lacked a reasonable basis for the Company’s 2015 guidance and their positive statements about La Quinta Holdings Inc’s then-current business and future financial prospects.
Those who purchased NYSE:LQ shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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