Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Middle District of North Carolina (the “Complaint”) on behalf of all persons or entities who purchased or otherwise acquired the stock of Primo Water Corporation (“Primo Water” or the “Company”) (Nasdaq: PRMW) in or traceable to the Company’s initial public offering on or about November 4, 2010 (the “IPO”) and the Company’s offering of common stock on or about June 17, 2011 (collectively, the “Offerings”), as well as purchasers of the Company’s common stock between November 4, 2010 and August 10, 2011, inclusive (the “Class Period”). If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development Director of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail to email@example.com, or at: http://investigations.rigrodskylong.com/primo-water-corporation-prmw/. Primo Water, through its subsidiaries, provides multi-gallon purified bottled water, self-serve filtered drinking water, and water dispensers in the United States and Canada. The Complaint names Primo Water, certain of its officers and directors and the underwriters of the Offerings as defendants and alleges they have violated the Securities Act of 1933 and the Securities Exchange Act of 1934. The Complaint alleges that during the Class Period, defendants’ positive statements about the Company were lacking in a reasonable basis of fact and were materially false and misleading when made. Specifically, (a) neither demand nor sales of the Company’s products were as robust as represented; (b) stores owned by the Company’s largest retail customers did not carry the Company’s products so the Company was not generating any revenue from those locations; (c) the Company’s growth and business prospects were heavily dependent upon the ability of the Company’s two largest customers to sell products from other, unrelated companies before those customers would order products from Primo Water; (d) the Company’s primary retail customers would not be in position to order any of the Company’s products until after those retail customers cleared out other inventory sitting on their shelves, including inventory related to products sold by competitors to the Company; (e) the Company’s largest retail customers had delayed promotions of the Company’s products, which negatively impacted the Company’s sales; (f) the Company’s growth rate had slowed and would be slower for the rest of 2011, if not beyond; and (g) the Company would not meet the financial guidance it provided to investors.
On August 10, 2011, before the stock market opened, the Company issued a press release announcing its financial results for the second quarter of 2011 wherein it reported a net loss of $2 million. Primo Water also revised its financial projections downward for the third and fourth quarters of 2011.In response to the foregoing news, Primo Water’s shares reacted by falling 61% from the previous day’s close of $13.92 per share, to close at $5.40 per share on August 10, 2011, on very heavy trading volume. If you wish to serve as lead plaintiff, you must move the Court no later than January 31, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome.