SAN DIEGO & MAHWAH, N.J.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Ascena Retail Group, Inc. (NASDAQ: ASNA) filed a derivative complaint against the company's officers and directors for breach of fiduciary duties and unjust enrichment from September 16, 2015 to the present. Ascena Retail Group, Inc. operates as a specialty retailer of apparel, shoes, and accessories for women and girls.
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Ascena Retail Group, Inc. (ASNA) Accused of Misleading Shareholders
According to the derivative 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 from the beginning due to ANN Inc.'s poor business operations. Ascena's officers and directors concealed this reality from investors 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's officers and directors 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, Inc. (ASNA) Shareholders Have Legal Options
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