A lawsuit was filed on behalf of investors in L Brands, Inc. (NYSE: LB) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/16/2019 -- An investor, who purchased shares of L Brands, Inc. (NYSE: LB), filed a lawsuit over alleged violations of Federal Securities Laws by L Brands, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of L Brands, Inc. (NYSE: LB) have certain options and for certain investors are short and strict deadlines running. Deadline: September 21, 2019. NYSE: LB investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff claims that between May 31, 2018 and November 19, 2018, the 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, that 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, that 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, and that 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, on November 19, 2018, L Brands, Inc announced its financial results for the 2018 third quarter, the period ended November 3, 2018. L Brands, Inc also announced that it intended to reduce its annual ordinary dividend to $1.20 from $2.40 beginning with the quarterly dividend to be paid in March 2019 in order to deleverage Company's balance sheet over time.
Shares of L Brands, Inc. (NYSE: LB) declined from $61.45 per share in December 2017 to as low as $21.45 per share in June 2019.
Those who purchased shares of L Brands, Inc. (NYSE: LB) have certain options and should contact the Shareholders Foundation.
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