WAYNE, Pa., Nov. 22, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Urban Outfitters, Inc. ("Urban Outfitters") (NASDAQ: URBN) common stock during the period between March 12, 2013 and September 9, 2013 (the "Class Period").
The complaint charges Urban Outfitters and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Urban Outfitters engages in the retail and wholesale of general consumer products in the United States, targeting the younger millennial age demographic.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's financial performance and future prospects and/or failed to disclose the following adverse facts: (1) Urban Outfitters' comparable sales growth had significantly declined, particularly in its all-important Urban Outfitters group; (2) as a results of declining sales, Urban Outfitters was forced to offer an additional 30% off all clearance items during Labor Day weekend 2013, something it had not been forced to do during the prior year Labor Day weekend; and (3) as a result of the foregoing, the Company was not on track to achieve the financial results defendants had led the market to expect during the Class Period.
On September 9, 2013, the Company disclosed its second quarter 2014 financial results and commented on third quarter 2014 expectations, reporting that comparable sales at the Company's important Urban Outfitters Group had grown only 5.2% in the 2014 second quarter – far less than the 9% defendants' comments had led the investment community to expect – and that 2014 second quarter markdowns had resulted in a "lower average unit selling price," lowering overall sales revenues and profits. Critically, defendants also issued disappointing third quarter guidance. On this news, the price of Urban Outfitters common stock, which had traded above $44 per share in intraday trading during the Class Period, fell approximately 13% from that level to close at $38.35 per share on September 10, 2013, erasing more than $837 million in market capitalization from the stock's Class Period high.
If you are a member of the class, you may, no later than December 10, 2013, request that the Court appoint you as lead plaintiff of the class. 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 Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/urbn or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at [email protected]. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.