Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Foot Locker (NYSE:FL) in connection to alleged violations of securities laws by FL. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Foot Locker from August 19, 2016 until August 17, 2017.
The class action complaint specifically alleges that during the period in question, FL might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company’s vendors were undergoing a transition to making sales through online retail platforms; that as a result, the usefulness of the company’s physical retail stores was decreasing, as was the value of its relationship with these vendors; that the company faced higher price competition, due to an increase in online retail competition, at the same time that the demand at its brick-and-mortar stores had gone down; that consequently the company’s stock was trading at an artificially inflated price when it reached a high of $79.20/share, allowing executives to sell more than 192,000 shares of their stock for gross proceeds totaling $13.3 million. The company disclosed, on August 18, 2017, that it had experienced poor financial results in Q2 2017, as well as a 6% decrease in quarterly same-store sales year-over-year, resulting a revenue miss. The company also announced that it was shutter approximately 130 stores and that it expected weaker sales in the rest of the fiscal year. After this news was announced, the company’s stock declined approximately 28%, closing at $34.38/share on that day. The complaint alleges that when true details emerged, investors suffered losses.
According to the company’s website, Foot Locker “is a leading global athletic footwear and apparel retailer, which caters to the sneaker enthusiast” that provides selection in “premium products for a wide variety activities,” such as basketball, running and training. The company operates 1,835 stores in 23 countries, according to its website, and it trades on the New York Stock Exchange under the symbol FL.