A securities class action has been filed in the USDC — DE. against Capri Holdings Limited (CPRI) (“Capri”), on behalf of all those that purchased Capri stock, or sold Capri puts between August 10, 2023, and October 24, 2024, both dates inclusive (the “Class Period”).
Capri is a fashion firm that owns several fashion brands, such as Michael Kors, which is a fashion house that manufactures and sells handbags, among other things. Tapestry is similarly a fashion firm, and it owns fashion brands such as Coach and Kate Spade. Like Michael Kors, Coach and Kate Spade are fashion houses that manufacture and sell, among other things, handbags.
The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that:
(1) the accessible luxury handbag market is a distinct and well-defined market within the overall handbag market and understood as such by the individual defendants, as well as by other Capri and Tapestry executives;
(2) Capri and Tapestry maintained analogous production facilities and supply chains for their accessible luxury handbags that were distinct from the production facilities and supply chains used to manufacture luxury or mass market handbags, confirming that the accessible luxury handbag market is distinct from the mass market and luxury handbag markets;
(3) Capri and Tapestry internally considered Coach and Michael Kors to be each other’s closest and most direct competitors;
(4) that, conversely, Capri and Tapestry did not internally consider their handbag brands to be in direct competition with luxury handbags or mass market handbags;
(5) a primary internal rationale for the Capri acquisition was to consolidate prevalent brands within the accessible luxury handbag market so as to reduce competition, increase prices, improve profit margins, and reduce consumer choice within that market; and
(6) as a result of the above, the risk of adverse regulatory actions and/or the Capri acquisition being blocked was materially higher than represented by defendants, thereby harming investors.
As a result of this news, the price of Capri stock dropped from $41.60 per share on October 24, 2024 to $21.26 per share on October 25, 2024, a nearly 50% decline on abnormally high trading volume.
If you purchased Capri stock, or sold Capri puts during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information.”
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