NEW YORK, July 24, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Ohio on behalf of all investors that purchased L Brands, Inc. (NYSE: LB) securities between May 31, 2018 and November 19, 2018 (the “Class Period”). Investors have until September 23, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The complaint, filed on July 23, 2019, alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding L Brands' business and prospects, which caused L Brands stock to trade at artificially inflated prices of more than $37 per share during the Class Period. Specifically, the complaint alleges that, prior to and during the Class Period, L Brands' Victoria's Secret and PINK businesses began to experience deteriorating operating performance due to, among other things, increased competition from new lingerie brands. In an attempt to drive sales and retain market share in the face of increasing competition, Victoria's Secret and PINK engaged in heavy promotional activities by offering consumers large discounts and even giving items free of charge. While this marketing strategy helped to mitigate sales declines, it adversely impacted the Company's profit margins and cash flows and had a deleterious impact on the Company's liquidity. In response to questions from securities analysts about the sustainability of the Company's dividends, defendants repeatedly stated that L Brands had sufficient cash flow and cash on hand to sustain its dividends and that the Company, "in its history, ha[d] never reduced the dividend." Then, just weeks after defendants issued a series of false and misleading statements about the Company's dividends, L Brands announced that it was cutting its dividend in half so that it could pay down existing debt. In response to this news, the price of L Brands common stock declined approximately 18%, from $34.55 per share on November 19, 2018 to $28.43 per share on November 20, 2018.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the L Brands class action please go to https://bespc.com/LB. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com