NEW YORK, Dec. 28, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Capri Holdings Limited (NYSE: CPRI), Tapestry, Inc., and certain of Capri and Tapestry’s senior executives for potential violations of the federal securities laws.
If you invested in Capri, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/capri-holdings-limited.
Investors have until February 21, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Capri stock or sold Capri puts. The case is pending in the U.S. District Court for the District of Delaware and is captioned Hurwitz v. Capri Holdings Limited, et al., No. 24-cv-1410.
Why was Capri Sued for Securities Fraud?
Capri is a fashion firm that owns several fashion brands, such as Michael Kors. Tapestry is also a fashion firm, and it owns fashion brands including Coach and Kate Spade. On August 10, 2023, Capri and Tapestry jointly announced that Tapestry would purchase Capri for $57 per share in cash.
During the relevant period, Capri and Tapestry stated that the acquisition would not stifle competition, and that they expected to obtain antitrust approval for the acquisition and for the deal to close in 2024.
On April 22, 2024, the FTC brought an action to enjoin the acquisition given its anticompetitive effects. Capri and Tapestry, however, strongly disputed the FTC’s allegations and insisted that the acquisition would be “pro-consumer” and have no negative effects on competition.
The Stock Declines as the Truth is Revealed
On October 24, 2024, the court granted the FTC’s motion for preliminary injunction and blocked the Capri acquisition. In its order, the court cited to hundreds of pages of internal documents revealing that defendants secretly understood that their brands were close competitors within a well-defined “accessible luxury handbag market” and that the Capri acquisition would decrease competition. According to the court, defendants’ statements to the investing public did not fit with the “commercial realities” to which defendants themselves were keenly attuned.
On this news, the price of Capri stock fell nearly 50%, from a closing price of $41.60 per share on October 24, 2024 to $21.26 per share on October 25, 2024.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/capri-holdings-limited.
What Can You Do?
If you invested in Capri you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/capri-holdings-limited
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/capri-holdings-limited
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