|Company name||Ascena Retail Group|
|Class period||September 16, 2015- June 8, 2017|
|Court||District of New Jersey|
Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against Ascena Retail Group (NASDAQ: ASNA) and Encourages Ascena Investors to Contact the Firm
NEW YORK, July 23, 2019- Bragar Eagel & Squire reminds investors that a class action lawsuit has been commenced on behalf of stockholders of Ascena Retail Group. Stockholders have until August 6, 2019 50 petition the court to serve as Lead plaintiff.
Class Period: September 16, 2015 – June 8, 2017
Lead Plaintiff Deadline: August 6, 2019
The complaint charges Ascena and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ascena is a leading national specialty retailer of apparel for women and teen girls. In August 2015, Ascena completed the acquisition of Ann Inc. (“Ann”), the parent company of Ann Taylor and LOFT (the “Ann Acquisition”).
The complaint alleges that during the Class Period, defendants made materially misleading statements and/or failed to disclose adverse information regarding Ascena’s business and operations. Specifically, the complaint alleges that defendants failed to disclose that the Ann Acquisition was a complete disaster for the Company as Ann’s operations were in far worse condition than had been represented to the public; that, in order to mask the true condition of Ann, defendants improperly delayed recognizing an impairment charge to the value of Ann’s goodwill and, as a result, Ascena’s reported income and assets were materially overstated and the Company’s financial results were not prepared in conformity with Generally Accepted Accounting Principles (“GAAP”); and that many of the brands acquired in the Ann Acquisition were in steep decline and were also materially overvalued on Ascena’s Class Period financial statements. As a result of this information being withheld from the market, the price of Ascena common stock was artificially inflated to more than $14 per share during the Class Period.
On May 17, 2017, Ascena announced that it was revising its third quarter and full year 2017 sales and earnings outlook, due to “a period of unprecedented secular change that is disruptive to traditional business models,” and that the Company would be taking an impairment charge. On this news, the price of Ascena stock dropped from $2.82 per share to $2.06 per share, a decline of 26%. Then on June 8, 2017, Ascena announced its third quarter 2017 financial results, reporting a GAAP loss of $5.29 per diluted share compared to net earnings of $0.08 per diluted share in the prior year period. The loss included a non-cash pre-tax impairment charge of $1.324 billion (after tax impact of $5.22 per diluted share) to write down a portion of the Company’s goodwill and other intangible assets.
If you purchased Ascena securities suffered a loss, have information, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.