NEW YORK, Jan. 2, 2025 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Capri Holdings Limited (“Capri” or the “Company”) (NYSE: CPRI). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Capri and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On August 10, 2023, Capri, which owns the Michael Kors brand, and competitor Tapestry, Inc. (“Tapestry”), which owns the Coach and Kate Spade brands, jointly announced their entry into a merger agreement, pursuant to which Tapestry would purchase Capri for $57 per share in cash (the “Capri Acquisition”).
On November 6, 2023, Capri and Tapestry disclosed that they each received a request for additional information from the Federal Trade Commission (“FTC”) in connection with its antitrust review of the Capri Acquisition.
On this news, the price of Capri stock declined from $50.66 per share on November 6, 2023 to $48.82 per share on November 7, 2023 on abnormally high trading volume.
In mid-April 2024, FTC Bureau of Competition Director Henry Liu made comments about the agency’s focus at the 2024 American Bar Association Antitrust spring meeting in Washington, D.C. Multiple news outlets reported that investors were concerned that Liu may have been referencing the Capri Acquisition as a potential enforcement target through his comments.
On this news, the price of Capri stock declined from $44.03 per share on April 9, 2024 to $39.31 per share on April 12, 2024 on abnormally high trading volume.
On April 17, 2024, The New York Times reported that the FTC was preparing to sue to block the Capri Acquisition, according to “two people with knowledge of the matter who were not authorized to discuss the deliberations.”
On this news, the price of Capri stock declined from $38.93 per share on April 16, 2024 to $37.87 per share on April 17, 2024 on abnormally high trading volume.
On April 22, 2024, the FTC filed a lawsuit in federal court to enjoin the Capri Acquisition, alleging that, if allowed, the Capri Acquisition would eliminate direct head-to-head competition between Kate Spade, Coach, and Michael Kors, which it claimed all compete within the “accessible luxury handbag market.”
On this news, the price of Capri stock declined from $37.96 per share on April 22, 2024 to $34.81 per share on April 25, 2024 on abnormally high trading volume.
Then, after a seven-day hearing, on October 24, 2024, a federal judge granted the FTC’s motion to preliminarily enjoin the Capri Acquisition.
As a result of this news, the price of Capri stock dropped from $41.60 per share on October 24, 2024 to $21.26 per share on October 25, 2024, a nearly 50% decline on abnormally high trading volume.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
