A lawsuit was filed on behalf of investors in The Gap, Inc. (NYSE: GPS) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 12/15/2022 -- An investor, who purchased shares of The Gap, Inc. (NYSE: GPS), filed a lawsuit over alleged violations of Federal Securities Laws by The Gap, Inc.
Investors who purchased shares of The Gap, Inc. (NYSE: GPS) u have certain options and for certain investors are short and strict deadlines running. Deadline: February 3, 2022. NYSE: GPS investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
San Francisco, CA based The Gap, Inc. operates as an apparel retail company. On May 20, 2022, during trading hours, The Wall Street Journal published an article entitled "Old Navy Made Clothing Sizes for Everyone. It Backfired. The clothing brand's push for inclusivity left it with a shortage of middle sizes. 'It's super-frustrating.'" The article stated that "Old Navy set out to make clothes shopping more inclusive for women of all body types. It ended up with too many extra-small and extra-large items and too few of the rest, a mismatch that frustrated customers and contributed to falling sales and a management shake-up." Further, the article stated that "Gap warned that sales for the spring quarter would fall short of expectations in part due to troubles at Old Navy[,]" but that "[t]he extended sizes were the culprit, according to current and former employees."
Finally, the article stated that "Old Navy's stumbles don't bode well for Gap Inc. In 2021, Old Navy accounted for 54% of the company's sales and roughly 80% of profits[.]"
Shares of The Gap, Inc. (NYSE: GPS) declined from $15.36 per share on April 13, 2022, to as low as $9.24 per share on May 24, 2022.
The plaintiff claims that between November 24, 2021 and July 11, 2022, the defendants made false and/or misleading statements and/or failed to disclose that: (1) there were execution missteps in size and assortment at Old Navy related to BODEQUALITY which were adversely impacting Old Navy's margins and financial results; (2) contrary to the Company's statements, there were inventory risks relating to BODEQUALITY that were actually existing that were adversely affecting the Company's operations; and as a result (3) the Company's statements during the Class Period about the historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of the Company, and were materially false and misleading, and lacked a factual basis
Those who purchased shares of The Gap, Inc. (NYSE: GPS) have certain options and should contact the Shareholders Foundation.
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