BOSTON — Legal firm Block & Leviton has initiated a securities fraud lawsuit against Capri Holdings Ltd. and some of its top executives, according to an announcement on Friday. The action comes in the wake of significant financial losses reported by investors following a failed acquisition attempt by Capri that saw its stock prices plummet. Shareholders who suffered financial damages are urged to come forward to possibly recuperate their investments.
The lawsuit stems from events starting on August 10, 2023, when Capri Holdings, known for its Michael Kors brand, and Tapestry, the parent company of Coach and Kate Spade, disclosed an agreement for Tapestry to acquire Capri for $57 per share in cash. This proposed transaction was expected to merge three significant players in the accessible luxury handbag market.
However, the merger was put on hold by a legal challenge from the U.S. Federal Trade Commission. After extensive hearings, on October 24, 2024, Judge Jennifer L. Rochon of the U.S. District Court for the Southern District of New York granted a preliminary injunction against the acquisition. The court supported the FTC’s concerns, citing a substantial body of evidence that contradicted the defendant’s public claims, highlighting that the brands involved were indeed direct competitors.
Following the court’s decision, Capri Holdings’ stock value halved, dealing a heavy blow to investors. The legal challenge now presents an opportunity for those affected between August 10, 2023, and October 24, 2024, to seek reparation. Investors are encouraged to participate in the lawsuit regardless of whether they still own the stock or have already divested.
Investors interested in becoming lead plaintiffs have a deadline of February 21, 2025, to apply. As the class is not yet certified, representation by an attorney is not automatic. Shareholders must take action to officially join the lawsuit or alternately, they can remain as absent class members if they choose not to take any action.
For those possessing non-public information regarding Capri Holdings, there is an opportunity to assist in the investigation or to collaborate with legal representatives in reporting to the Securities Exchange Commission under its whistleblower program. Whistleblowers may be eligible for rewards amounting to up to 30% of any financial recovery made through SEC actions, which underscores the potential financial and ethical incentive for coming forward.
Block & Leviton is recognized as a formidable force in securities class action litigation, with a history of securing substantial settlements for defrauded investors. The firm’s national reputation is built on aggressive and effective advocacy in federal courtrooms across the United States.
For more details about the case and information on participation options, shareholders may reach out to Block & Leviton via their dedicated case website, by phone, or through email.
This notice might act as advertising for legal services by Block & Leviton LLP, located at 260 Franklin St., Suite 1860, Boston, MA 02110.
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