BENSALEM, Pa., May 10, 2023 /PRNewswire/ -- Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Target Corporation ("Target" or the "Company") (NYSE: TGT).
Class Period: August 18, 2021 – May 17, 2022
Lead Plaintiff Deadline:May 30, 2023
Investors suffering losses on their Target investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On May 18, 2022, Target released its first quarter 2021 financial results, disclosing that the Company's revenue had declined by nearly 19%, while its gross margin had fallen by 4.3%. The Company explained that its practice of ordering inventory before it was needed, while previously considered "durable" and "flexible," had now resulted in overstocked, unsellable inventory, taking up space and leaving Target unable to quickly pivot to meet changing consumer preferences and with an inventory increase of nearly $1.1 billion over the previous quarter. Furthermore, the Company stated that it expected the excess inventory to negatively affect earnings into the next quarter.
On this news, Target's stock price fell $53.67, or 24.9%, to close at $161.61 per share on May 18, 2022, thereby injuring investors.
The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors: (1) the true extent of Target's difficulty maintaining a balanced inventory of in-demand goods, despite its insights into changing consumer preferences; (2) that Target was severely impacted by changing consumer preferences; (3) that Target's inventory mix was significantly more sensitive to changing consumer preferences due to Target's practice of buying larger quantities ahead of season, and was therefore at significant risk of having to use markdowns to sell out-of-demand goods; and (4) that, as a direct result of these changing preferences, Target's inventory increasingly became out-of-balance and overweight in bulky and unsellable goods throughout the Class Period forcing Target to markdown its out-of-demand goods, thereby negatively impacting revenue; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
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SOURCE Law Offices of Howard G. Smith
