Robbins Arroyo LLP: Shareholders File Class Action Against Ascena Retail Group, Inc. (ASNA)
Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Ascena Retail Group, Inc. (NASDAQ: ASNA) has filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1933 between September 16, 2015 and June 8, 2017. Ascena Retail Group, Inc. operates as a specialty retailer of apparel, shoes, and accessories for women and girls in four main segments: Premium Fashion, Value Fashion, Plus Fashion, and Kids Fashion.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/ascena-retail-group-inc/
Ascena Retail Group, Inc. Accused of Misleading Investors
According to the complaint, Ascena touted its acquisition of ANN Inc. as positive and having potential for continued growth. However, Ascena's acquisition of ANN Inc. was a complete disaster due to ANN Inc.'s poor business operations. This information was hidden from investors as Ascena concealed the reality of ANN Inc.'s condition by improperly delaying their recognition of an impairment charge made on the value of ANN Inc.'s goodwill. This resulted in materially overstated financial results, including the overvaluing of declining ANN Inc. brands. Despite the adverse facts about the acquisition, Ascena executives continued to mislead investors by positively assuring the viability and growth of the company following the acquisition of ANN Inc. On May 17, 2017, Ascena issued a press release that reported their entire fiscal year's sales, revealing a 6-7% drop despite the positive assurances of Ascena executives. On this news, the price of Ascena stock dropped from $2.82 per share to $2.06 a share, a 26% decline. The stock never recovered and now trades at under $1.00.
Ascena Retail Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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