SAN DIEGO & MAHWAH, N.J.–(BUSINESS WIRE)–$ASNA #ClassAction–Shareholder rights law firm Robbins
Arroyo LLP announces that a purchaser of Ascena Retail Group, Inc.
(NASDAQ: ASNA) has filed a class action complaint against the company
for alleged violations of the Securities and Exchange Act of 1933
between September 16, 2015 and June 8, 2017. Ascena Retail Group, Inc.
operates as a specialty retailer of apparel, shoes, and accessories for
women and girls in four main segments: Premium Fashion, Value Fashion,
Plus Fashion, and Kids Fashion.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/ascena-retail-group-inc/
Ascena Retail Group, Inc. Accused of Misleading Investors
According to the complaint, Ascena touted its acquisition of ANN Inc. as
positive and having potential for continued growth. However, Ascena’s
acquisition of ANN Inc. was a complete disaster due to ANN Inc.’s poor
business operations. This information was hidden from investors as
Ascena concealed the reality of ANN Inc.’s condition by improperly
delaying their recognition of an impairment charge made on the value of
ANN Inc.’s goodwill. This resulted in materially overstated financial
results, including the overvaluing of declining ANN Inc. brands. Despite
the adverse facts about the acquisition, Ascena executives continued to
mislead investors by positively assuring the viability and growth of the
company following the acquisition of ANN Inc. On May 17, 2017, Ascena
issued a press release that reported their entire fiscal year’s sales,
revealing a 6-7% drop despite the positive assurances of Ascena
executives. On this news, the price of Ascena stock dropped from $2.82
per share to $2.06 a share, a 26% decline. The stock never recovered and
now trades at under $1.00.
Ascena Retail Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contacts
Leo Kandinov
Robbins Arroyo LLP
[email protected]
(619)
525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
