NEW YORK, Dec. 11, 2017 /PRNewswire/ -- Bernstein Liebhard LLP today announced that only eleven days remain to file a motion for lead plaintiff in a class action pending against Skechers (USA), Inc. ("Skechers" or the "Company") (NYSE: SKX). The case, which is pending in the United States District Court for the Southern District of New York, alleges claims on behalf of a class (the "Class") consisting of all persons or entities who purchased the securities of Skechers during the period between April 23, 2015 and October 22, 2015 (the "Class Period"). The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Skechers designs, develops, and markets footwear for men, women, and children. Throughout the Class Period, Defendants allegedly touted the strength of customer demand within its Domestic Wholesale segment, which the Company claimed would spur continued sales growth. However, these statements were allegedly false and misleading because the Company failed to disclose that: (1) customers took early receipt of Fall 2015 inventory, causing them to delay receipt of and, in some cases, cancel pending orders scheduled for delivery in the second half of 2015; (2) as a result, the Domestic Wholesale segment's growth rate was unsustainable; and (3) the Company's positive statements about its business, operations, and prospects therefore lacked a reasonable basis.
Skechers' slowing sales growth was revealed on October 22, 2015 when, after the market closed, the Company issued a press release announcing financial results for the third quarter ended September 30, 2015. These results included disappointing net sales that fell short of analyst estimates. Specifically, $20 million in net sales were shifted from third quarter 2015 into second quarter 2015 due to early customer deliveries. On this news, the price of Skechers common stock fell $14.55 per share, or 31.5%, to close at $31.64 on October 23, 2015.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Skechers securities during the Class Period. If you invested in Skechers securities as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 22, 2017.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Skechers investor and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The Firm has been named to the National Law Journal's "Plaintiffs' Hot List" thirteen times.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.
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SOURCE Bernstein Liebhard LLP