DENVER, CO / ACCESSWIRE / September 11, 2019 / Franklin D. Azar & Associates, P.C. announces that it is investigating a lawsuit filed against L Brands, Inc. (“L Brands” or the “Company”) behalf of L Brands shareholders (NYSE:LB) alleging that L Brands and certain of its officers violated the federal securities laws. L Brands investors who have purchased at least 30,000 shares of L Brands Common Stock are encouraged to contact the Azar Law Firm at [email protected] or call 844-241-9475 to learn more about the case.
The lawsuit alleges that between May 31, 2018 and November 19, 2018 (the “Class Period”), defendants made materially false and misleading statements and/or failed to disclose adverse information regarding L Brands’ business and prospects, which caused L Brands stock to trade at artificially inflated prices of more than $37 per share during the Class Period. Specifically, the complaint alleges that, prior to and during the Class Period, L Brands’ Victoria’s Secret and PINK businesses began to experience deteriorating operating performance due to, among other things, increased competition from new lingerie brands. In an attempt to drive sales and retain market share in the face of increasing competition, Victoria’s Secret and PINK engaged in heavy promotional activities by offering consumers large discounts and even giving items free of charge. While this marketing strategy helped to mitigate sales declines, it adversely impacted the Company’s profit margins and cash flows and had a deleterious impact on the Company’s liquidity. In response to questions from securities analysts about the sustainability of the Company’s dividends, defendants repeatedly stated that L Brands had sufficient cash flow and cash on hand to sustain its dividends and that the Company, “in its history, ha[d] never reduced the dividend.”
Then, after the market closed on November 19, 2018, L Brands issued a press release announcing its financial results for the 2018 third quarter ending on November 3, 2018. The press release also announced that L Brands intended to reduce its annual ordinary dividend to $1.20 from $2.40 beginning with the quarterly dividend to be paid in March 2019 in order to deleverage. On this news, L Brands's share price fell from $34.55 per share on November 19, 2018 to a closing price of $28.43 on November 20, 2018: a $6.12 or a 17.71% drop.
If you have purchased at least 30,000 shares of L Brands Common Stock (NYSE:LB), you may have a claim for damages, and you may be eligible to seek a position in the case as a lead plaintiff. Please contact the Azar Law Firm’s shareholder rights team at [email protected] or call 844-241-9475. Interested L Brands shareholders have until September 23, 2019 to apply to be lead plaintiff. The class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
The Azar Law Firm’s securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. The Azar Law Firm is working with Thornton Law Firm LLP in investigating this action. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Ivy T. Ngo
Franklin D. Azar & Associates, P.C.
14426 East Evans Ave
Aurora, CO 80014
Email: [email protected]
Tel: 303-757-3300
SOURCE: Franklin D. Azar and Associates P.C.