Did you lose money on investments in Kohl's? If so, please visit Kohl's Corporation Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, NY / ACCESSWIRE / September 28, 2022 / Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Kohl's Corporation ("Kohl's" or the "Company") (NYSE:KSS) between October 20, 2020 and May 19, 2022, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Eastern District of Wisconsin and alleges violations of the Securities Exchange Act of 1934.
Kohl's is a retail company in the U.S. that offers branded apparel, footwear, accessories, beauty, and home products through its stores and website.
In October 2020, Kohl's announced that it had entered into a new strategic framework to "drive top-line growth," "expand operating margin," and become "the most trusted retailer of choice for the active and casual lifestyle" (the "Strategic Plan").
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose, inter alia, that: (i) Kohl's Strategic Plan was not well tailored to achieving the Company's stated goals; (ii) Defendants overstated the Company's success in executing its Strategic Plan; and (iii) Kohl's had deficient disclosure controls and procedures, internal control over financial reporting, and corporate governance mechanisms.
On May 19, 2022, Kohl's issued a press release announcing the Company's fiscal Q1 2022 results, reporting, among other items, a net sales figure expected to grow up to only 1% (compared to Wall Street consensus growth of 1.94%), earnings per share of $0.11 (missing estimates by $0.59), a revenue figure which only barely edged expectations, and the Company's decision to cut its full year earnings forecast. These results were at odds with Defendants' representations regarding the successful execution of the Company's Strategic Plan, which was purportedly poised to drive top-line growth and position the Company for long-term success.
Then, on May 20, 2022, Macellum Advisors GP, LLC ("Macellum"), "a long-term holder of nearly 5% of the outstanding common shares of Kohl's", issued a statement addressing "[t]his quarter's extremely disappointing results," which Macellum attributed to a "flawed strategic plan and an inability to execute." Macellum also stated that "the current Board appears to have withheld material information from shareholders about the state of Kohl's in the lead-up to this year's pivotal annual meeting," which "suggests to us a clear breach of fiduciary duty."
On this news, Kohl's stock price fell $5.84 per share, or 12.97%, to close at $39.20 per share on May 20, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than November 1, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Kohl's securities, and/or would like to discuss your legal rights and options please visit Kohl's Corporation Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
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SOURCE: Bernstein Liebhard LLP