Macy's faces shareholder investigation over $154 million accounting scandal
- Macy's Inc. disclosed significant accounting issues related to delivery expenses totaling around $132 to $154 million.
- An independent investigation found that a former employee intentionally manipulated financial statements.
- Pomerantz Law Firm is now investigating on behalf of affected investors, highlighting the potential for securities fraud claims.
On December 3, 2024, Pomerantz Law Firm announced it is investigating potential securities fraud claims on behalf of investors connected to Macy's Inc. This investigation follows a press release from Macy's issued on November 25, 2024, where the company revealed an issue related to its delivery expenses during the preparation of its financial statements for the fiscal quarter ending November 2, 2024. Investigations conducted by the company led to the discovery that a former employee had manipulated accounting entries to conceal significant delivery expenses from the fourth quarter of 2021 through nearly the end of 2024. Macy's stated that the individual responsible for this fraudulent activity was no longer employed at the company. This accounting issue resulted in a notable decline in Macy's stock value, which fell by 2.27% on the day the information was made public. The Pomerantz Firm, well-regarded in the class action litigation space, has extended its outreach to investors who may have suffered losses as a result of these matters, indicating the seriousness of the situation and its potential legal ramifications. Claims of securities fraud can not only impact investor trust but also have long-lasting implications for the company's reputation and financial health. The Pomerantz Law Firm is encouraging affected individuals to reach out for legal support as they investigate the full extent of the company's possible wrongdoing and to assess the paths available for recourse against the corporation.