The Gap Class Action Lawsuit (GPS Lawsuit)
A lawsuit has been filed in the Eastern District of New York against The Gap Inc., (GPS:NYSE) as 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. The stock fell 35.72%.
What is The The Gap Class Action Lawsuit About?
Is There A The Gap Class Action Lawsuit?
GPS:NYSE Class Action Lawsuit (GPS) was filed on December 5, 2022 on behalf of the shareholders. Furthermore, Item 303 of SEC Regulation S-K, 17 C.F.R. §229.303(b)(2)(ii), required defendants in their SEC filings above to “describe any known trends or uncertainties that have had or that are reasonably likely to have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations.”
The Company failed to disclose the trend that the Company was in fact unable to properly stock appropriately sized clothing in executing the Company’s BODEQUALITY program at Old Navy—which was having a materially adverse impact on the Company’s profitability and sales.
Then on April 21, 2022, after market hours, the Company announced that Nancy Green, CEO of Old Navy had stepped down.
On this news, Gap’s stock price fell $2.57 per share, or 17%, to close at $11.72 per share on April 22, 2022, on unusually heavy trading volume, damaging investors.
On May 20, 2022, during market hours, The Wall Street Journal published an article revealing that the Company had improperly managed its inventory of plus size clothing at its Old Navy stores causing material declines in margins and business results.
On this news, the Company’s stock to fall 7% from closing at $11.19 per share on May 19, 2022 to closing at $10.33 per share on May 23, 2022, over the rest of trading May 20, 2022 and the next full trading day of May 23, 2022.
On May 27, 2022, the Company filed with the SEC a form 10-Q for period ended April 30, 2022. The 10-Q was signed and certified as to their accuracy by Syngal and O’Connell. In the 10-Q, the Company admitted that execution missteps in size and assortment of inventory at Old Navy adversely impacted the Company’s financial results.
On this news, Gap’s stock price fell 4.9% to close at $11.03 per share on May 31, 2022, further damaging investors.
On July 11, 2022, after market hours, the Company announced that Syngal was stepping down from her position as President and CEO of the Company, and resigned from the Board of Directors.
On this news, Gap’s stock price fell 5% to close at $8.32 per share on July 12, 2022, further damaging investors.
Is There A Deadline For The GPS Lawsuit?
How Much Did Shareholders Lose In GPS Stock?
Shareholders who held The Gap securities saw stock price fell $2.57 per share, or 17%, to close at $11.72 per share on April 22, 2022, 7% from closing at $11.19 per share on May 19, 2022 to closing at $10.33 per share on May 23, 2022, 4.9% to close at $11.03 per share on May 31, 2022 and stock fell 5% to close at $8.32 per share on July 12, 2022, further damaging investors.
What Is The Gap Lawsuit Complaint?
Levi & Korsinsky, LLP announces that a GPS class action lawsuit (The Gap Class Action Lawsuit) has been filed on behalf of investors who purchased The Gap Class Action Lawsuit (GPS) securities between November 24, 2021 – July 11, 2022, inclusive. For more on the GPS Lawsuit please contact us today.
According to the The Gap lawsuit, throughout the Class Period 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.
If you suffered a loss in GPS, you have until February 3, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Why Levi & Korsinsky, LLP Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
According to the Private Securities Reform Act of 1995, any investor who bought or acquired GPS securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The GPS class-action lawsuit is directed by the lead plaintiff. To litigate the The Gap Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the GPS Class Action Lawsuit.
What Does GPS Do?
The Gap, Inc. operates as an apparel retail company.
The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.
The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs.
It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, Athleta, and Banana Republic stores and websites in Asia, Europe, Latin America, the Middle East, and Africa.
As of December 31, 2021, the company had 2,835 company-operated stores and 564 franchise stores. It also provides its products through e-commerce sites.
The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.