SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Foot Locker, Inc. (NYSE: FL) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between August 19, 2016 and August 17, 2017. Foot Locker, through its subsidiaries, operates as an athletic shoes and apparel retailer.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/foot-locker-inc
Foot Locker Accused of Misleading Investors About its Financial Prospects
According to the complaint, Foot Locker touted the company's outstanding track record of meaningful sales and profit growth in its public filings, while continuing to assure investors of the company's strong vendor relationships and solid financial position. However, Foot Locker's vendors were transitioning to selling through online retailers, in turn decreasing the utility of Foot Locker's brick and mortar stores. In addition, Foot Locker faced increased pricing competition and lower demand at its stores due to competition from online retailers. On August 18, 2017, Foot Locker reported that its 2Q17 revenues had declined 4.4% year-over-year and same store sales fell 6%. The company further announced that it would close approximately 130 stores and that it expected weaker sales for the remainder of FY17. Since Foot Locker began releasing poor financial results, the company's stock fell over 51% to close at $34.38 per share on August 18, 2017.
Foot Locker Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid 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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