San Diego, CA -- (SBWIRE) -- 08/18/2023 -- An investor, who purchased shares of Party City Holdco Inc. (OTC: PRTYQ, formerly NYSE: PRTY), filed a lawsuit against Party City Holdco Inc over alleged violations of Federal Securities Laws.

Investors who purchased shares of Party City Holdco Inc. (OTC: PRTYQ, formerly NYSE: PRTY) have certain options and for certain investors are short and strict deadlines running. Deadline: October 2, 2023. Party City Holdco Inc. (OTC: PRTYQ, formerly NYSE: PRTY investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Woodcliff Lake, NJ based Party City Holdco Inc. designs, manufactures, sources, and distributes party goods worldwide.

On January 17, 2023, Party City Holdco Inc. abruptly filed for bankruptcy, disclosing the Company's ongoing liquidity shortfall, its need for loans beyond credit lines available, and its inability to find lenders willing to provide those loans.

On June 9, 2023, Party City Holdco Inc. further revealed that its audit firm had resigned due to a disagreement about the Company's decision to not include a "going concern" warning in its third quarter 2022 financial report, which would have alerted investors to the Company's potential inability to continue as a going concern. Furthermore, the Company also disclosed that there was a "material weakness in internal control over financial reporting" at the time of the third quarter 2022 10-Q.

The plaintiff claims that between November 8, 2022 and June 9, 2023, the defendants made false statements and/or concealed that the Company affirmatively misrepresented that its capital resources "will be adequate to meet our liquidity needs for at least the next 12 months", that omitted that there was substantial doubt about the Company's ability to continue as a going concern, that downplayed the nature and extent of the Company's then-existing liquidity problems, that omitted that the Company's existing credit facilities were insufficient to satisfy its operational needs and that it was unable to obtain additional loans in the normal course of business, and that omitted that there was a material weakness in its internal control over financial reporting.

Those who purchased shares of Party City Holdco Inc. (OTC: PRTYQ, formerly NYSE: PRTY) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.