Ongoing Deadline Alert: Legal Claims Investigation by Faruqi & Faruqi for Capri Holdings Investors

Ongoing Legal Investigation on Capri Holdings



Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced an important investigation concerning claims on behalf of investors in Capri Holdings Limited. The firm has issued a reminder regarding an approaching deadline for shareholders as they assess potential legal actions against the company, which trades under the ticker CPRI on the New York Stock Exchange.

The investigation is particularly directed at individuals who acquired securities in Capri between August 10, 2023, and October 24, 2024. Those affected are strongly encouraged to contact partner Josh Wilson of Faruqi & Faruqi directly. Interested investors can reach him at 877-247-4292 or 212-983-9330 (Ext. 1310). The need for prompt action arises from allegations that may have led to significant monetary losses for many investors during this timeframe.

The basis for the investigation stems from a federal securities class action lawsuit filed against Capri Holdings. The complaint alleges that the company, alongside its executives, is thought to have violated federal securities laws by making false and/or misleading statements. They are also accused of failing to disclose significant information, particularly regarding the dynamics within the accessible luxury handbag market. This segment is specifically called out for being clearly defined and recognized by both Capri and Tapestry executives.

According to the lawsuit, several critical claims have emerged: firstly, that Capri and Tapestry maintained distinct production facilities and supply chains for their accessible luxury handbags separate from those used for luxury and mass market counterparts. Furthermore, the companies are reported to have internally perceived Coach and Michael Kors as their closest competitors. Conversely, they did not view their respective brands as competitors against the broader luxury or mass market handbag categories.

A significant internal motive behind Capri’s acquisition moves appears to have been the intention to consolidate brands within the accessible luxury handbag market, aimed at reducing competition while subsequently enhancing prices, profit margins, and thus diminishing consumer choice within this domain. Given these considerations, it is suggested that the likelihood of regulatory scrutiny or even hindrance of the acquisition was notably higher than publicly communicated by the involved parties.

Compounding these issues, a court ruling on October 24, 2024, revealed that the U.S. District Court for the Southern District of New York granted the Federal Trade Commission's request for a preliminary injunction regarding the Capri acquisition, tipping the scales against the company. The ruling cited a “substantial body of compelling evidence” indicating that Capri and Tapestry executives, in contrast to their public statements, understood their brands to be direct competitors within the accessible luxury handbag market.

As a consequence of this ruling, Capri Holdings' stock price plummeted by nearly 50%. Investors who believe they are part of this claim class and wish to take on a more active role can apply to become lead plaintiffs, which allows them to steer the litigation on behalf of similarly situated class members. Alternatively, they may opt to remain passive members, whereby their claims will still be valid regardless of their involvement level in the litigation process.

Faruqi & Faruqi, LLP remains committed to fostering transparent discussions and encourages anyone who might possess relevant information regarding Capri’s conduct to come forward. This includes whistleblowers, former employees, and shareholders.

To delve deeper into this class action regarding Capri Holdings, visit Faruqi & Faruqi or connect directly with partner Josh Wilson. For updates, individuals can also follow the law firm on LinkedIn, X, or Facebook.

Note: This article serves as an advertisement for Faruqi & Faruqi, LLP, emphasizing their dedication to investor protection and their responsive approach to legal representation. Historical results do not guarantee similar outcomes in future cases, and all communications are treated confidentially.

Topics Financial Services & Investing)

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