NEW YORK, May 18, 2016 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/target/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Minnesota on behalf of purchasers of Target Corporation ("Target") (NYSE: TGT) common stock during the period between February 27, 2013 and May 19, 2014 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 17, 2016. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or Evan J. Kaufman of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/target/. 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.
The complaint charges Target and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Target operates general merchandise discount stores throughout the United States. On January 13, 2011, Target announced that it would expand its retail operations into Canada, with plans to open between 100 and 150 stores in the country during 2013 and 2014.
The complaint alleges that beginning on February 27, 2013, and continuing throughout the Class Period, defendants painted a rosy picture of Target's expansion into Canada, including issuing strong financial and operational guidance for fiscal 2013. Target's Canadian operations, however, encountered problems from the start. When Target's Canadian results began to underperform investors' expectations, defendants made a series of reassuring statements about Target's new Canadian stores and operations, including statements regarding its supply chain infrastructure and information technology systems; the Company's current and projected operations in Canada; and the Company's outlook and prospects for all operations, including those in Canada. Defendants also reassured investors that Target's expansion into Canada was progressing in a fashion similar to that experienced by the Company when it opened new stores in the United States. As a result of these positive statements, Target stock traded at artificially inflated prices, reaching as high as $73.50 per share during the Class Period.
According to the complaint, however, defendants' Class Period statements regarding Target's Canadian expansion efforts and operations were materially false and misleading and/or failed to disclose the following adverse facts that defendants knew or recklessly disregarded: (a) at the time of the opening of its first group of stores in Canada, Target had significant problems with its supply chain infrastructure, distribution centers, and technology systems, as well as inadequately trained employees; (b) these problems caused significant, pervasive issues, including excess inventory at distribution centers and inadequate inventory at retail locations; (c) this excess inventory at distribution centers and lack of inventory at retail locations forced Target to heavily discount products and incur heavy losses; and (d) these supply-chain and personnel problems were not typical of newly launched locations in Target's traditional U.S.-based market.
On August 21, 2013, Target announced disappointing results for the second quarter of 2013, causing Target's stock price to decline by $2.45 per share, or 3.6%. On November 21, 2013, Target released downbeat results for the third quarter of 2013, including news that the Company's Canadian segment had suffered a drop in operating margin from rates exceeding 30% in prior quarters to only 14.8% due to the need to aggressively discount merchandise. On this news, Target's stock price declined by $2.30 per share, or 3.5%. On May 5, 2014, Target announced that its CEO, the architect of the Company's Canadian expansion, would leave the Company effective immediately, without any clear successor. On this news, Target's stock price fell $2.14 per share, or 3.4%.
Then on May 20, 2014, prior to the market opening, news reports circulated that Target had fired its President of Canadian operations. This abrupt termination revealed that the string of weak results from Target's Canadian operations was not simply a result of growing pains associated with normal store openings, but rather was due to severe operational issues. On this news, the price of Target stock fell another $1.68 per share, or 2.9%, to close at $56.61 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Target common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both the total amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/target/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP