Sign In  |  Register  |  About Los Altos  |  Contact Us

Los Altos, CA
September 01, 2020 1:26pm
7-Day Forecast | Traffic
  • Search Hotels in Los Altos

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Shareholder Alert: Robbins LLP Informs Investors of Class Action Against Loyalty Ventures Inc. (LYLTQ) p/k/a/ Alliance Data Systems Corporation (ADS)

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased Loyalty Ventures Inc. (OTC: LYLTQ) common stock between November 8, 2021 and June 7, 2022. Loyalty Ventures was created as the result of a November 2021 spinoff from Alliance Data Systems Corporation (NYSE: ADS) (n/k/a Bread Financial Holdings, Inc. (BFH)) in which Loyalty Ventures became an independent public company. Loyalty Ventures owns and operates the AIR MILES Reward Program (“Air Miles”), an end-to-end loyalty platform, and BrandLoyalty, a campaign-based loyalty program for grocers and other high-frequency retailers.

Contact us to learn more:

Aaron Dumas, Jr.

(800) 350-6003

adumas@robbinsllp.com

Shareholder Information Form

What is this Case About: Alliance Data Systems Corporation (ADS) Made False and Misleading Statements in Connection with the Spin-Off of Loyalty Ventures Inc. (LYLTQ)

According to the complaint, defendants misrepresented and/or failed to disclose to investors that: (1) the Air Miles program suffered from a lack of investment prior to the spinoff; (2) as a result, Sobeys, one of Loyalty Ventures’ largest customers, had informed defendants it was considering exercising its early termination rights; (3) the threat of Sobeys’ departure loomed throughout 2021 including in the timeframe leading up to the spinoff; (4) defendants expected the departure of any single large Sponsor, such as Sobeys, would have “network effect” on the value of the entire Air Miles program; (5) the high leverage and debt service obligations foisted upon Loyalty Ventures, in conjunction with the “network effect” impact on the value of the Air Miles business, threatened the Company’s ability to continue operations; and (6) as a result, defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

The truth was revealed before the markets opened on June 8, 2022, when Loyalty Ventures issued a press release announcing that “its AIR MILES® Reward Program segment and AIR MILES’ Sponsor, Sobeys were unable to align on extension terms; consequently, on June 7, 2022, Sobeys provided notice of its intent to exit the program on a region-by-region basis.” On this news, the share price of Loyalty Ventures common stock fell more than 45% from a closing price of $11.03 per share on June 7, 2022, to a closing price of $6.02 per share on June 8, 2022.

On March 9, 2023, Loyalty Ventures reported it was filing for Chapter 11 bankruptcy.

What Now: Similarly situated shareholders may be eligible to participate in the class action against Loyalty Ventures Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by June 26, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.

To be notified if a class action against Loyalty Ventures Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 LosAltos.com & California Media Partners, LLC. All rights reserved.