Cases
Foot Locker, Inc. (NYSE: FL)
Securities Class Action
Overview
Overview
- Date:
- 4/2/2018
- Company Name:
- Foot Locker, Inc.
- Stock Symbol:
- FL
- Class Period:
- FROM 8/19/2016 TO 8/17/2017
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Eastern New York
NEW YORK, April 2, 2018 – Bragar Eagel & Squire, P.C. announces to investors that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all persons or entities who purchased or otherwise acquired Foot Locker, Inc. (NYSE: FL) securities between August 19, 2016 - August 17, 2017 (the “Class Period”). Investors have until May 8, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint charges Foot Locker and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. Foot Locker is an athletic shoe and apparel retailer.
The Complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse information regarding Foot Locker’s business and prospects, including that Foot Locker’s vendors were transitioning to selling through various online retailers, diminishing the utility of Foot Locker’s large number of brick and mortar stores and the once-high value of its exclusivity relationships with those vendors, and that competition with online retailers had increased the pricing competition Foot Locker faced while also materially lowering the demand at Foot Locker stores. As a result of defendants’ failure to disclose this adverse information, the price of Foot Locker stock was artificially inflated to as high as $79.20 per share during the Class Period and Foot Locker senior executives, including the individuals defendants, were able to sell over 192,000 shares of their personally held Foot Locker stock at artificially inflated prices for gross proceeds of $13.3 million.
Then on August 18, 2017, Foot Locker announced disappointing second quarter 2017 financial results, including a 6% decline in quarterly same-store sales year-over-year, which resulted in a substantial revenue miss. The Company also stated that it would close approximately 130 stores, more than the 100 stores it had previously announced it would close. During a conference call held with investors and analysts that morning, the Company said it expected weaker sales for the remainder of fiscal 2017. As a result of this news, the price of Foot Locker common stock declined nearly 28% to close at $34.38 per share on August 18, 2017, on unusually high trading volume of more than 36.2 million shares traded.
If you purchased or otherwise acquired Foot Locker securities during the Class Period or continue to hold shares purchased prior to the Class Period, 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 investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
The Complaint charges Foot Locker and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. Foot Locker is an athletic shoe and apparel retailer.
The Complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse information regarding Foot Locker’s business and prospects, including that Foot Locker’s vendors were transitioning to selling through various online retailers, diminishing the utility of Foot Locker’s large number of brick and mortar stores and the once-high value of its exclusivity relationships with those vendors, and that competition with online retailers had increased the pricing competition Foot Locker faced while also materially lowering the demand at Foot Locker stores. As a result of defendants’ failure to disclose this adverse information, the price of Foot Locker stock was artificially inflated to as high as $79.20 per share during the Class Period and Foot Locker senior executives, including the individuals defendants, were able to sell over 192,000 shares of their personally held Foot Locker stock at artificially inflated prices for gross proceeds of $13.3 million.
Then on August 18, 2017, Foot Locker announced disappointing second quarter 2017 financial results, including a 6% decline in quarterly same-store sales year-over-year, which resulted in a substantial revenue miss. The Company also stated that it would close approximately 130 stores, more than the 100 stores it had previously announced it would close. During a conference call held with investors and analysts that morning, the Company said it expected weaker sales for the remainder of fiscal 2017. As a result of this news, the price of Foot Locker common stock declined nearly 28% to close at $34.38 per share on August 18, 2017, on unusually high trading volume of more than 36.2 million shares traded.
If you purchased or otherwise acquired Foot Locker securities during the Class Period or continue to hold shares purchased prior to the Class Period, 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 investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.