SAN DIEGO, Jan. 02, 2025 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a class action was filed on behalf of all persons who purchased or sold Capri Holdings Limited (NYSE: CPRI) stock between August 10, 2023 and October 24, 2024. Capri is a fashion firm.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Capri Holdings Limited (CPRI) Misled Investors Regarding the Viability of its Acquisition by Tapestry, Inc. (TPR)
According to the complaint, on August 10, 2023, Capri and Tapestry jointly announced their entry into a merger agreement, pursuant to which Tapestry would purchase Capri for $57 per share in cash. On October 25, 2023, Capri announced that its shareholders had voted to approve adoption of the Merger Agreement.
The complaint alleges that on April 22, 2024, the FTC brought an action to enjoin the Capri acquisition and subsequently moved for a preliminary injunction. The FTC alleged that, if allowed, the Capri Acquisition would eliminate direct head-to-head competition between Kate Spade, Coach, and Michael Kors. On October 24, 2024, the FTC blocked the acquisition. On this news, the price of Capri stock fell to $21.26 per share or nearly 50 percent.
According to the complaint, during the class period, defendants failed to disclose: (a) that 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; (b) that 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; (c) that Capri and Tapestry internally considered Coach and Michael Kors to be each other’s closest and most direct competitors; (d) that, conversely, Capri and Tapestry did not internally consider their handbag brands to be in direct competition with luxury handbags or mass market handbags; (e) that 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 (f) that, as a result of (a)-(e) above, the risk of adverse regulatory actions and/or the Capri Acquisition being blocked was materially higher than represented by defendants.
What Now: You may be eligible to participate in the class action against Capri Holdings Limited. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by February 21, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas, Jr.
(800) 350-6003
[email protected]
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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