BottomBounce
2 days ago
Capri Holdings is facing a class action lawsuit alleging securities fraud related to the failed Tapestry acquisition, with investors claiming that the company made false or misleading statements about the deal and downplayed antitrust risks.
Here's a more detailed breakdown:
The Lawsuit:
A class action lawsuit has been filed against Capri Holdings Limited (CPRI) and Tapestry, Inc., alleging securities fraud.
The Allegations:
The lawsuit alleges that Capri and Tapestry made false or misleading statements and/or failed to disclose material information about the proposed acquisition of Capri by Tapestry, which would have combined Tapestry's Coach and Kate Spade brands with Capri's Michael Kors brand.
The Failed Acquisition:
The Federal Trade Commission (FTC) sued to block the $8.5 billion acquisition, citing concerns that the combined company would harm consumers in the accessible luxury handbag market.
FTC's Concerns:
The FTC argued that the merger would eliminate direct competition between the two companies' brands in the accessible luxury handbag space, potentially leading to higher prices, reduced innovation, and fewer consumer choices.
Court Decision:
A federal court in New York granted the FTC's request for a preliminary injunction, effectively blocking the merger.
Class Period:
The lawsuit represents investors who traded Capri stock between August 10, 2023, and October 24, 2024.
Lead Plaintiff Deadline:
Investors who suffered losses during this period have a deadline to seek to be a lead plaintiff in the class action lawsuit. $CPRI
TFMG
6 years ago
$CPRI IS ALL THEY BAD NEWS BAKED IN, PRE EARNINGS.? REVERSAL ?
Better known as Michael Kors, NYSE:CPRI has suffered a drastic fall from the August high of $76. Retail has had it difficulties in that time as the economy in the last quarter of 2018 took a very negative stance as political unrest(shut down) and worldwide trade worries cut consumer confidence and spending. Results from the first quarter so far for retailers have been very mixed, with NYSE:JWN suffering a huge sell off post earnings .
Capri have made some moves to address issues within the company, firstly increasing product lines but keeping inventory under greater control to reduce discount selling.
New focus on e-commerce
Continued acquisitions .
Cost saving and streamlining of IT systems.
Its is expected that certain sections of the business will be in decline including licensing and Jewellery, but we think that is already in the discounted stock price.
We would look for a small entry pre earnings , with strong support below and add on any reversal.