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Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Ascena Retail Group
[June 25, 2019]

Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Ascena Retail Group


Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming August 6, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of Ascena Retail Group ("Ascena" or the "Company") (NASDAQ: ASNA) investors who purchased securities between September 16, 2015 and June 8, 2017, inclusive (the "Class Period").

If you are a shareholder who suffered a loss, click here to participate.

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to [email protected], or visit our website at www.glancylaw.com.

On May 18, 2015, the Company announced that it would acquire ANN Inc. for a combination of cash and stock.

On September 19, 2016, the Company fied a Form 10-K for fiscal year ended July 30, 2016, that reported $733.9 million goodwill related to ANN, which is a $225.7 million reduction.



On this news, the Company's share price fell $2.43, or nearly 30%, to close at $5.69 on September 20, 2016, thereby injuring investors.

Then, on May 17, 2017, the Company revised its third quarter and full fiscal year 2017 sales and earnings outlook, further noting that the Company would be taking an unspecified impairment charge.


On this news, the Company's share price fell $0.76, or nearly 27%, to close at $2.06 on May 18, 2017, thereby further injuring investors.

Then, on June 8, 2017, the Company issued a press release regarding its third quarter financial results, reporting a GAAP loss of $5.29 per diluted share compared to net earnings of $0.08 per diluted share for the same period in the year prior. The loss included a $1.324 billion impairment charge to the Company's goodwill and other intangible assets.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company's acquisition of ANN, Inc., the parent company of Ann Taylor and LOFT, was a complete disaster for the Company as ANN's operations were in far worse condition than had been represented to the public; (2) to mask the true condition of ANN, Defendants 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 and the Company's financial results were not prepared in conformity with GAAP; (3) many of the brands acquired in the ANN acquisition were in steep decline and were also materially overvalued on Ascena's Class Period financial statement; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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If you purchased or otherwise acquired Ascena securities during the Class Period you may move the Court no later than August 6, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. 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 Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.


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