#USA #San Diego #Robbins LLP #Capri Holdings #FTC Investigation

Class Action Alert: Robbins LLP Takes Action Against Capri Holdings Limited

Robbins LLP has recently announced the initiation of a class action lawsuit aimed at protecting investors who bought or sold shares of Capri Holdings Limited (NYSE: CPRI) between August 10, 2023, and October 24, 2024. This legal response was triggered by serious allegations against Capri Holdings concerning misleading statements made to shareholders about the ramifications of its merger with Tapestry, Inc.

Background of the Case

The saga began on August 10, 2023, when Capri Holdings Limited entered into a merger agreement with Tapestry, Inc. According to the agreement, Tapestry was set to acquire Capri for $57 per share in cash. The merger was met with initial optimism, culminating in a shareholder vote on October 25, 2023, where the merger was approved. However, this optimistic outlook soon crumbled under the scrutiny of the Federal Trade Commission (FTC).

On April 22, 2024, the FTC filed actions to block the acquisition, arguing that it would suppress competition among popular brands such as Kate Spade, Coach, and Michael Kors. The FTC’s contention was based on the fact that the merger would likely lead to the elimination of direct competition within the accessible luxury handbag market. Consequently, on October 24, 2024, the FTC's efforts materialized when it formally blocked the acquisition, resulting in a drastic decline in Capri’s share prices, halving them to $21.26 per share.

Allegations Against Capri Holdings

The class action complaint outlines various claims against Capri and its executives. It alleges that during the specified class period, the defendants failed to disclose significant information regarding the nature of the accessible luxury handbag market. Key points raised include:

• - Market Distinction: The complaint claims that Capri and Tapestry recognized that the accessible luxury handbag market is distinct and well-defined compared to the broader handbag market. Yet, this was not communicated to investors.
• - Internal Competition Assessment: There were claims that Capri and Tapestry internally considered brands like Coach and Michael Kors as their closest competitors, explicitly excluding other luxury or mass-market brands from direct competition.
• - Regulatory Risks: The defendants purportedly underestimated the regulatory challenges posed by the merger, leading to a misleading assessment of the merger's viability.
• - Market Manipulation Intent: The court filings suggest that one of the primary motivations for the merger was to consolidate market power, which could have negative implications for consumers through reduced choices and inflated prices.

Implications for Shareholders

Shareholders now have a unique opportunity to become involved in this class action against Capri Holdings Limited. Those wishing to take on the role of lead plaintiff in the case must submit their applications by February 21, 2025. It’s important to note that participation in the class action is not a prerequisite for recovering any potential losses.

Potential class members can remain passive participants if they choose not to engage further in the legal proceedings. Robbins LLP emphasizes that all representation is conducted on a contingency fee basis, meaning no fees or expenses will be shouldered by shareholders unless recovery is achieved.

Conclusion

Robbins LLP has been at the forefront of advocating for shareholder rights since its inception in 2002, recovering over $1 billion for investors. This latest class action against Capri Holdings underscores the firm's ongoing commitment to holding corporate executives accountable and protecting shareholder interests. Shareholders who have inquiries concerning their involvement in this case or wish to learn more can reach out directly to attorney Aaron Dumas, Jr.

By joining this class action, investors take a stand against corporate malfeasance, signaling that misleading practices will not be tolerated. For ongoing updates or information on similar cases, shareholders are encouraged to sign up with Robbins LLP to stay informed on developments that may impact their investments.