SAN DIEGO & COLUMBUS, Ohio--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of L Brands, Inc. (NYSE: LB) has filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between May 31, 2018 and November 19, 2018. L Brands is a specialty retailer of women's intimate apparel and beauty and home fragrance products. Among its brands includes Victoria's Secret and PINK, which accounts for more than half of L Brands' business.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/l-brands-inc/
L Brands Accused of Making False and Misleading Statements
According to the complaint, in an attempt to drive sales in the face of increasing competition, Victoria's Secret and PINK engaged in heavy promotional activities that offered consumers large discounts and even gave away items free of charge. As a result, Victoria's Secret and PINK's combined annual operating income declined by approximately 61%. L Brands' deteriorating operating performance and decreasing operating cash flows prompted analysts to frequently question the sustainability of L Brands' dividends. L Brands' CFO responded by assuring L Brands had sufficient cash flow to sustain its dividends and that "in [L Brands'] history, [it] has never reduced the dividend." However, these statements proved to be material y false and misleading when in November 2018, just weeks after issuing these positive assurances, L Brands announced it was cutting its dividend in half. Since this news, L Brands stock price has declined almost 25% and currently trades at $26.00.
L Brands 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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