SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action against Target Corporation and Certain Officers ...
25 May 2016 - 6:56AM
Pomerantz LLP announces that a class action lawsuit has been filed
on behalf of Target Corporation (“Target” or the “Company”)
(NYSE:TGT) and certain of its officers. The class
action, filed in United States District Court, District of
Minnesota, and docketed under 16-cv-01485, is on behalf of a class
consisting of all persons or entities who purchased or otherwise
acquired Target securities between February 27, 2013 and May 19,
2014 inclusive (the “Class Period”). This class action seeks
to recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the “Exchange Act”).
If you are a shareholder who purchased Target
securities during the Class Period, you have until July 18, 2016 to
ask the Court to appoint you as Lead Plaintiff for the class.
A copy of the Complaint can be obtained at www.pomerantzlaw.com.
To discuss this action, contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
Target currently operates general merchandise
discount stores throughout the U.S. The Company sells a wide
variety of household essentials, music and movies, electronics,
clothing, and other items, through its traditional stores, its
website, and via direct shipment from vendors or third-parties.
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 throughout the Class
Period, Defendants made materially false and misleading statements
regarding the Company’s business, operational and compliance
policies. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that: (1) at
the time of the opening of Target's 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; (2) these problems caused
significant, pervasive issues, including excess inventory at
distribution centers and inadequate inventory at retail locations;
(3) the excess inventory at distribution centers and lack of
inventory at retail locations forced Target to heavily discount
products and incur heavy losses; (4) the supply-chain and personnel
problems were not typical of newly launched locations in Target's
traditional U.S.-based market; and (5) as a result, Target’s public
statements were materially false and misleading at all relevant
times.
On August 21, 2013, Target announced its results
for the second quarter of 2013, including weak guidance for
full-year earnings per share (“EPS”) for 2013. Although Chief
Executive Officer (“CEO”) Defendant Gregg Steinhafel sought to
reassure investors that the poor performance was of “the same kind”
that Target saw “every time we open a new store here in the United
States,” Target’s stock price declined by $2.45 per share, or 3.61
percent.
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 operation margin
from rates exceeding 30 percent in prior quarters to only 14.8
percent due to the need to aggressively discount merchandise.
Although Chief Financial Officer (“CFO”) John Mulligan attempted to
assure investors that Target’s personnel were working to
“rationalize” the Company’s “inventory overhang,” Target’s stock
price declined by $2.30 per share, or 3.46 percent.
On May 5, 2014, Target announced that its
Defendant Steinhafel, the architect of the Company’s Canadian
expansion, would leave the Company effective immediately, without
any clear successor. Instead, the Company’s CFO Mulligan was
appointed interim CEO. On this news, Target’s stock price fell
$2.14 per share, or 3.45 percent.
On May 20, 2014, prior to the trading session,
news reports circulated that Target had fired Tony Fisher, the
Company’s president of Canadian operations. The abrupt termination
of Mr. Fisher revealed that the string of weak results from
Target’s Canadian operations were not simply growing pains
associated with normal store openings, but rather due to
significant operational issues and were partial disclosures of
Defendants’ fraudulent scheme to conceal the persistent and
ultimately intractable problems with the expansion.
Eventually, on January 15, 2015, Target revealed
the Company would discontinue its Canadian operations and that
Target Canada Co. had filed for bankruptcy protection in Canada. In
response to this news, Target stock declined $1.63 per share, or
2.1 percent.
The Pomerantz Firm, with offices in New York,
Chicago, Florida, and Los Angeles, 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
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
Target (NYSE:TGT)
Historical Stock Chart
From Apr 2024 to May 2024
Target (NYSE:TGT)
Historical Stock Chart
From May 2023 to May 2024