NEW YORK, June 11, 2019 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Ascena Retail Group ("Ascena" or the "Company") (NASDAQ: ASNA). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Ascena and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 18, 2015, Ascena issued a press release announcing that it had entered into a definitive merger agreement with ANN Inc. ("ANN"), under which Ascena would acquire ANN for a combination of cash and stock (the "ANN Acquisition"). On September 19, 2016, Ascena filed a Form 10-K for the fiscal year ended July 30, 2016, with the U.S. Securities and Exchange Commission. The Form 10-K reported goodwill related to ANN in the amount of $733.9 million, a reduction of $225.7 million. On this news, which indicated that the ANN Acquisition was experiencing problems, Ascena's stock price fell $2.43 per share, or 29.93%, to close at $5.69 per share on September 20, 2016.
On May 17, 2017, Ascena issued a press release revising its third quarter and full year fiscal 2017 sales and earnings outlook, advising investors that "[t]he specialty retail sector is in a period of unprecedented secular change that is disruptive to traditional business models, and we believe operating conditions in our sector are likely to remain challenging for the next 12 to 24 months." Ascena further noted that the Company would be taking an impairment charge, but failed to quantify the amount. On this news, Ascena's stock price fell $0.76 per share, or 26.95%, to close at $2.06 per share on May 18, 2017.
Then, on June 8, 2017, Ascena issued a press release detailing its third quarter financial results. The Company reported a GAAP loss of $5.29 per diluted share compared to net earnings of $.08 per diluted share for the same period in the prior year. The press release further stated that "[T]he loss in the current quarter includes a non-cash pre-tax impairment charge of $1.324 billion (after-tax impact of $5.22 per diluted share) to write-down a portion of the Company's goodwill and other intangible assets."
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP