SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Party City Holdco - PRTYQ

NEW YORK, Sept. 21, 2023

The investigation concerns whether Party City and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action] 

On January 17, 2023, Party City abruptly filed for bankruptcy, with the Company's bankruptcy filings citing its ongoing liquidity shortfall, its need for additional loans beyond the credit lines available to it, and its inability to locate lenders willing to provide additional loans—issues previously undisclosed to investors. 

On this news, Party City's stock price fell $0.253 per share, or 67.72%, over the following two trading sessions, closing at $0.121 per share on January 19, 2023. 

Then, on June 9, 2023, Party City revealed in a filing with the U.S. Securities and Exchange Commission that Ernst & Young LPP had resigned as its auditor due to a disagreement over the Company's decision not to include a "going concern" warning in its quarterly report for the third quarter of 2022, which would have alerted investors that there was substantial doubt about the Company's ability to continue as a going concern for the next twelve months.