NEW YORK, March 12, 2018 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Foot Locker, Inc. ("Foot Locker") (NYSE:FL) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Foot Locker securities between August 19, 2016 and August 17, 2017, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/fl.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the class period, defendants made false and misleading statements and/or failed to disclose to investors that: (1) Foot Locker's vendors were transitioning to selling through various online retailers, diminishing the utility of Foot Locker's large number of brick and mortar stores and the once-high value of its exclusivity relationships with those vendors; (2) competition with online retailers had increased the pricing competition Foot Locker faced while also materially lowering the demand at Foot Locker stores; and (3) as a result of defendants' failure to disclose this information, Foot Locker stock was artificially inflated to a high of $79.20 per share during the Class Period, while executives were able to sell over 192,000 shares of their personally held Foot Locker stock at artificially inflated prices for gross proceeds of $13.3 million.
On August 18, 2017, Foot Locker revealed poor second quarter 2017 financial results, and a 6% drop in quarterly same-store sales year-over-year, causing the substantial revenue miss. Foot Locker announced that it would close roughly 130 stores, more than the 100 stores it had previously announced it would close and on a conference call with investors and analysts that morning, Foot Locker said it expected weaker sales for the remainder of fiscal 2017. Following this news, Foot Locker stock dropped roughly 28% to close at $34.38 per share on August 18, 2017, on unusually high trading volume of more than 36.2 million shares traded.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/fl or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Foot Locker you have until May 8, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
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SOURCE Bronstein, Gewirtz & Grossman, LLC
