Final Deadline Approaching on February 3, 2023: Kessler Topaz Meltzer & Check, LLP Reminds The Gap, Inc. Investors of Class Action Lawsuit Deadline
ACCESSWIRE 29 Jan 2023, 01:05 GMT+10
RADNOR, PA / ACCESSWIRE / January 28, 2023 / The law firm of Kessler Topaz Meltzer & Check, LLP(www.ktmc.com) informs investors that a securities class action lawsuit has been filed against The Gap, Inc. ('Gap') (NYSE:GPS). The action charges Gap with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of Gap's materially misleading statements and omissions to the public, Gap's investors have suffered significant losses.
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
GAP'S ALLEGED MISCONDUCT
After market hours on November 23, 2021, Gap issued a press release announcing it results for the third quarter ended October 30, 2021. In that release, Gap also touted the success of its sales related to its BODEQUALITY launch at Old Navy.
On April 21, 2022, Gap announced that Nancy Green, CEO of Old Navy, had stepped down. Following this news, the price of Gap stock fell nearly 18%.
Then, on May 20, 2022, The Wall Street Journal published an article revealing that Gap had improperly managed its inventory of plus size clothing at its Old Navy stores, causing material declines in margins and business results. Specifically, the article stated that 'Old Navy set out to make clothes shopping more inclusive for women of all body types. It ended up with too many extra-small and extra-large items and too few of the rest, a mismatch that frustrated customers and contributed to falling sales and a management shake-up.' Further, the article stated that 'Gap warned that sales for the spring quarter would fall short of expectations in part due to troubles at Old Navy[,]' but that '[t]he extended sizes were the culprit, according to current and former employees.' Finally, the article indicated that 'Old Navy's stumbles don't bode well for Gap Inc. In 2021, Old Navy accounted for 54% of the company's sales and roughly 80% of profits[.]' Following this news, the price of Gap stock fell approximately 7% over the next two trading sessions.
Thereafter, on May 27, 2022, Gap admitted that execution missteps in size and assortment of inventory at Old Navy adversely impacted Gap's financial results. Following this news, the price of Gap stock fell nearly 5%.
Finally, on July 11, 2022, Gap announced that its President and CEO, Sonia Syngal, was stepping down from her position as President and CEO of Gap and had resigned from the Board of Directors. Following this news, the price of Gap stock fell an additional 5%.
WHAT CAN I DO?
Gapinvestors may, no later than February 3, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLPor other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Gap investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Gap, captioned Diaz v. The Gap, Inc. et al., Case No.1:22-cv-07371, is filed in the United States District Court for the Eastern District of New York before the Honorable Diane Gujarati.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.