LEAD PLAINTIFF DEADLINE ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In L Brands, Inc. To Contact The Firm
New York, New York--(Newsfile Corp. - August 15, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in L Brands, Inc. (NYSE: LB) ("L Brands" or the "Company") of the September 23, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in L Brands stock between May 31, 2018 and November 19, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/LB. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of all those who purchased L Brands common stock between May 31, 2018 and November 19, 2018 (the "Class Period"). The case, Walker v. L Brands, Inc. et al., No. 19-cv-03186 was filed on July 23, 2019, and has been assigned to Judge Sarah D. Morrison.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that L Brands' Victoria's Secret and PINK businesses began to experience deteriorating operating performance due to, among other things, increased competition from new lingerie brands.
Specifically, in an attempt to drive sales and retain market share in the face of increasing competition, Victoria's Secret and PINK engaged in heavy promotional activities by offering consumers large discounts and even giving items free of charge. While this marketing strategy helped to mitigate sales declines, it adversely impacted the Company's profit margins and cash flows and had a deleterious impact on the Company's liquidity. In response to questions from securities analysts about the sustainability of the Company's dividends, defendants repeatedly stated that L Brands had sufficient cash flow and cash on hand to sustain its dividends and that the Company, "in its history, ha[d] never reduced the dividend."
Then, after the market closed on November 19, 2018, L Brands issued a press release announcing its financial results for the 2018 third quarter ending on November 3, 2018. The press release also announced that L Brands intended to reduce its annual ordinary dividend to $1.20 from $2.40 beginning with the quarterly dividend to be paid in March 2019 in order to deleverage.
On this news, L Brands' share price fell from $34.55 per share on November 19, 2018 to a closing price of $28.43 on November 20, 2018: a $6.12 or a 17.71% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding L Brands' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46969