NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in J.Jill, Inc. (“J.Jill” or the “Company”) (NYSE:JILL) of the December 12, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in J.Jill stock or options in or traceable to the Company’s March 9, 2017 initial public offering (the “IPO”) and would like to discuss your legal rights, click here: www.faruqilaw.com/JILL. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased shares of J.Jill common stock in or traceable to the Company’s IPO. The case, Branen v. J. Jill, Inc. et al, No. 1:17-cv-11980 was filed on October 13, 2017.
The lawsuit alleges that the Registration Statement filed in connection with the Company’s IPO was negligently prepared and, as a result, contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make adequate disclosures required under the rules and regulations governing the preparation of such documents.
Specifically, the lawsuit alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: 1) the Company’s purportedly unique and superior sales and marketing approach had not insulated the Company from adverse trends affecting the overall retail industry; 2) the Company’s historic gross margin growth was not sustainable and would not continue, as it relied on revenues from shipping fees, increased promotional efforts and other short-term boosts to revenues; 3) the Company was carrying increasing amounts of slow moving inventory and would need to significantly markdown sales items and increase promotional efforts in an attempt to continue its sales growth; 4) the Company’s brick-and-mortar stores were failing, as they were experiencing difficulty attracting customers and maintaining profitability, which would result in the Company shuttering up to eight stores in fiscal 2017, with the rate of store closures accelerating; and 5) as a result of the aforementioned, J.Jill’s business, prospects and ability to service its long-term debt had been materially impaired.
As of October 12, 2017, J.Jill’s share price closed at $4.86 per share, or more than 62% below its IPO price of $13.00 per share.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding J.Jill’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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