A lawsuit was filed on behalf of investors in Skechers USA Inc (NYSE:SKX) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/14/2017 -- An investor in NYSE:SKX shares filed a lawsuit over alleged violations of Federal Securities Laws by Skechers USA Inc.
Investors who purchased shares of Skechers USA Inc (NYSE:SKX) should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The plaintiff alleges on behalf of purchasers of Skechers USA Inc (NYSE:SKX) common shares between April 23, 2015 and October 22, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that Skechers USA Inc repeatedly touted the strength of customer demand within the Domestic Wholesale segment, which the Company claimed would spur continued sales growth.
The plaintiff alleges that Skechers USA Inc frequently emphasized that its Domestic Wholesale segment growth would continue into the second half of 2015 based on pending orders and meetings with key customers.
However, the plaintiff claims that the Defendants' statements between April 23, 2015 and October 22, 2015 pertaining to back-half 2015 customer demand and sales growth related thereto were materially false and misleading because Defendants failed to disclose that the Company's Domestic Wholesale customers took early receipt of fall 2015 inventory, causing them to delay receipt of and, in some cases, cancel pending orders scheduled for delivery in the second half of 2015, that as a result of the foregoing, the Company's Domestic Wholesale growth rate was unsustainable, and that the Company's positive statements about its business, operations, and prospects lacked a reasonable basis.
The plaintiff says that the Company's slowing sales growth was revealed on October 22, 2015 after the market closed, when Skechers USA Inc issued a press release announcing financial results for the third quarter ended September 30, 2015, which included disappointing net sales that fell short of analysts' consensus estimates.
The plaintiff claims that according to Defendants, $20 million in net sales were shifted from third quarter 2015 into second quarter 2015 due to early customer deliveries and that the defendants blamed the sales miss on the Company's inability to make up this shortfall in third quarter 2015 due to a weaker-than-expected retail environment.
Those who purchased shares of Skechers USA Inc (NYSE:SKX) have certain options and should contact the Shareholders Foundation.
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