SAN DIEGO, December 6, 2022 /PRNewswire/ — Robbins Geller Rudmann & Dowd LLP announces that buyers or acquirers of The Gap, Inc. (NYSE: GPS) have traded publicly traded securities between November 24, 2021 and July 11, 2022inclusively (the “Class Period”) have until February 3, 2023 to seek appointment as lead applicant in the Difference class action. Subtitle Diaz vs. The Gap, Inc.No. 22-cv-07371 (EDNY), the Difference The class action accuses Gap and some of its top executives of violating the Securities Exchange Act of 1934.
If you have suffered substantial losses and wish to act as the lead plaintiff of the Difference class action, please provide your information here:
You can also contact the lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected].
CASE ALLEGATIONS: Gap is a multinational apparel retail company, offering apparel, accessories and personal care products under the Old Navy, Gap, Banana Republic and Athleta brands. In 2021, Old Navy launched BODEQUALITY, a size inclusivity campaign that included clothing offerings up to size 28.
The Difference The Class Action alleges that throughout the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (i) there were errors of execution in terms of size and assortment at Old Navy related to BODEQUALITY which negatively impacted Old Navy’s margins and financial results; (ii) contrary to Gap’s statements, there were inventory risks related to BODEQUALITY that adversely affected Gap’s operations; and (iii) Gap’s statements during the Class Period regarding historical financial and operating measures and alleged market opportunities did not accurately reflect the true trajectory of Gap’s business, operations and financial results, and were materially false and misleading, and lacked a factual basis.
On April 21, 2022Gap announced that Nancy Green, CEO of Old Navy, had resigned. At this news, Gap’s share price fell nearly 18%.
Then, on May 20, 2022, The Wall Street Journal published an article revealing that Gap had mismanaged its plus-size clothing inventory at its Old Navy stores, leading to a significant drop in margins and business results. At this news, Gap’s stock price fell about 7% over the next two trading sessions.
Subsequently, on May 27, 2022, Gap admitted that execution errors in inventory sizing and assortment at Old Navy negatively impacted Gap’s financial results. At this news, Gap’s share price fell nearly 5%.
Finally, on July 11, 2022Gap announced that its CEO, defendant Sonia Syngal, was leaving her position as president and chief executive officer of Gap and had resigned from the board of directors. At this news, Gap’s stock price fell another 5%, further hurting investors.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired publicly traded securities of Gap during the Class Period to seek appointment as lead plaintiff in the Difference class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the relief sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the Difference class action. The main plaintiff can select a law firm of his choice to plead Difference class action. An investor’s ability to participate in any potential future takeover does not depend on its status as the lead claimant of the Difference class action.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked #1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other company from the plaintiffs. With 200 attorneys in 9 offices, Robbins Geller is one of the largest plaintiffs firms in the world and the firm’s attorneys have secured many of the largest securities class action recoveries in history, including the largest securities class action collection never realized – $7.2 billion – in In re Enron Corp. Dry. Litigation Please visit the following page for more information:
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