#United States #New York #Securities Fraud #Pomerantz LLP #Capri Holdings

Shareholder Alert: Capri Holdings Class Action Lawsuit Investigation

In a significant development affecting investors in Capri Holdings Limited (NYSE: CPRI), the Pomerantz Law Firm has recently initiated an investigation regarding potential claims of securities fraud and other unlawful business practices against the company. This inquiry comes in light of the company’s stock fluctuations following major business announcements and regulatory scrutiny.

On August 10, 2023, Capri announced a merger agreement with Tapestry, Inc., owners of the Coach and Kate Spade brands, at a purchase price of $57 per share. Initially, this announcement appeared promising for investors, aiming to enhance market position in the competitive luxury sector. However, the optimism quickly dissipated when both companies received requests from the Federal Trade Commission (FTC) for additional information related to antitrust investigations, which was disclosed on November 6, 2023. Following this news, the stock price saw a notable drop from $50.66 to $48.82 within a day, reflecting investor unease about the deal's viability.

As the investigation progressed, FTC Bureau of Competition Director Henry Liu made comments suggesting a focus on the acquisition during a spring meeting of the American Bar Association. Concern escalated among investors, further evidenced by a sharp decline in Capri's stock from $44.03 on April 9, 2024, to $39.31 by April 12, 2024. The market's anxiety reached new heights following reports on April 17, 2024, that the FTC was readying a lawsuit to block the acquisition.

The implications of this lawsuit became clearer when it was filed on April 22, 2024, alleging that the merger would substantially reduce competition in the accessible luxury handbag market. Consequently, Capri's stock price plummeted from $37.96 to $34.81 by April 25, 2024, sparking further questions about the company's future amidst legal challenges.

The aftermath proved even more detrimental when, on October 24, 2024, a federal judge ruled in favor of the FTC, granting a preliminary injunction against the acquisition. Subsequently, Capri's stock nosedived from $41.60 to $21.26 in just one day, indicating a near 50% loss for shareholders based on abnormally high trading volumes.

This turbulent journey in the stock market has prompted Pomerantz LLP to offer assistance to affected shareholders. The firm, which is recognized for its expertise in corporate, securities and antitrust litigation, invites all Capri investors who suffered losses to reach out for a consultation.

Pomerantz LLP has an extensive history, operating for over 85 years in advocating on behalf of victims of securities fraud and corporate misconduct. With offices in major cities worldwide, they have recovered substantial damages for numerous class-action plaintiffs. Investors may contact Danielle Peyton at [email protected] or by phone at 646-581-9980, extension 7980, for further information about joining the class action lawsuit.

As the situation unfolds, investors are encouraged to stay informed and proactive about their investments in Capri Holdings. The complexities of the current merger situation, coupled with regulatory challenges, necessitate a closer examination of the ongoing developments that could affect future stock performance and shareholder rights.