Need Help? Call : (310) 914-5007
Need Help? Call : (310) 914-5007
Los Angeles – The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Capri Holdings Limited (“Capri” or the “Company”) (NYSE: CPRI) securities or sold puts between August 10, 2023 and October 24, 2024, inclusive (the “Class Period”). Capri investors have until February 21, 2025 to file a lead plaintiff motion.
What Happened?
On October 24, 2024, a United States District Court determined that Capri’s merger with Tapestry, Inc. (“Tapestry”) would hurt competition and granted the Federal Trade Commission’s (“FTC”) motion for preliminary injunction, blocking the merger.
On this news, Capri’s stock price fell $20.34, or 48.9%, to close at $21.26 per share on October 25, 2024, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the accessible luxury handbag market is a distinct and well-defined market within the overall handbag market and understood as such by the Individual Defendants, as well as by other Capri and Tapestry executives; (2) that Capri and Tapestry maintained analogous production facilities and supply chains for their accessible luxury handbags that were distinct from the production facilities and supply chains used to manufacture luxury or mass market handbags, confirming that the accessible luxury handbag market is distinct from the mass market and luxury handbag markets; (3) that Capri and Tapestry internally considered Coach and Michael Kors to be each other’s closest and most direct competitors; (4) that, conversely, Capri and Tapestry did not internally consider their handbag brands to be in direct competition with luxury handbags or mass market handbags; (5) that a primary internal rationale for the Capri Acquisition was to consolidate prevalent brands within the accessible luxury handbag market so as to reduce competition, increase prices, improve profit margins, and reduce consumer choice within that market; and (6) that, as a result of the foregoing, the risk of adverse regulatory actions and/or the Capri Acquisition being blocked was materially higher than represented by defendants; and (7)as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
How To Participate or Learn More:
If you purchased Capri securities within the class period and would like to be included in the class action, please click the JOIN CLASS ACTION button above to submit your information.
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz
310-914-5007 
fcruz@frankcruzlaw.com
www.frankcruzlaw.com