NEW YORK, June 24, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Ascena Retail Group, Inc. ("Ascena" or the "Company")(NASDAQ:ASNA) of the August 6, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Ascena stock or options between September 16, 2015 and June 8, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/ASNA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Ascena common stock between September 16, 2015 and June 8, 2017 (the "Class Period"). The case, Newman v. Ascena Retail Group, Inc. et al., No. 19-cv-13529 was filed on June 7, 2019, and has been assigned to Judge Kevin McNulty.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the August 2015 acquisition of Ann Inc. ("Ann"), the parent company of Ann Taylor and LOFT (the "Ann Acquisition"), was a complete disaster for the Company as Ann's operations were in far worse condition than had been represented to the public. In order to mask the true condition of Ann, the Company improperly delayed recognizing an impairment charge to the value of Ann's goodwill and, as a result, Ascena's reported income and assets were materially overstated.
On May 17, 2017, Ascena announced that it was revising its third quarter and full year 2017 sales and earnings outlook, due to "a period of unprecedented secular change that is disruptive to traditional business models," and that the Company would be taking an impairment charge. Then on June 8, 2017, Ascena announced its third quarter 2017 financial results, reporting a GAAP loss of $5.29 per diluted share compared to net earnings of $.08 per diluted share in the year-ago period. The loss included 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.
On this news, Ascena's share price fell from $2.82 per share on May 17, 2017 to a closing price of $1.82 on June 8, 2017: a $1.00 or a 34.46% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Ascena's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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