NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all investors that purchased Canada Goose Holdings, Inc. (NYSE: GOOS) securities between March 16, 2017 and August 1, 2019 (the “Class Period”). Investors have until November 4, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The complaint, filed on September 3, 2019, alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Canada Goose sourced the down and fur used in its clothing products in a way that treated animals in an unethical and inhumane manner; (ii) Canada Goose was thus non-compliant with relevant FTC regulations pertaining to false advertising with respect to its sourcing practices; (iii) accordingly, Canada Goose was the subject of an ongoing FTC investigation regarding false advertising; and (iv) as a result, the company’s public statements were materially false and misleading at all relevant times.
On November 2, 2017, the non-profit organization People for the Ethical Treatment of Animals (PETA) issued a press release alleging that Canada Goose suppliers used unethical measures to obtain the down and fur used in creating the company’s clothing merchandise (the PETA Press Release). The PETA Press Release also stated that PETA had issued a complaint to the FTC regarding these practices because the company represented in communications and promotional materials that its clothing was produced with down and fur from sources that treated the animals used in sourcing those materials ethically and humanely.
On this news, Canada Goose’s stock price fell $0.70 per share, or roughly 3.27%, to close at $20.72 per share on November 2, 2017. Nevertheless, even after the PETA Press Release, Canada Goose continued to represent that the down and fur used in producing its clothing products were collected using humane and ethical practices.
Then, on June 17, 2019, the United States Federal Trade Commission (FTC) issued a closing letter to Canada Goose’s legal counsel. The FTC Closing Letter stated that the FTC had investigated Canada Goose’s advertising practices for possible violations of the Federal Trade Commission Act (FTC Act), citing concern[s] that Canada Goose may have made false or misleading representations about the treatment of geese whose down is used in Canada Goose’s apparel.
On this news, Canada Goose’s stock price fell $0.50 per share, or 1.36%, to close at $36.17 per share on June 17, 2019. According to an article published on July 12, 2019 by Truth In Advertising (TINA) a well-known watchdog for deceptive marketing practices Canada Goose continued to deny that it had changed the substance of its prior statements. At least in part as a result of Canada Goose’s refusal to admit it had changed the substance of its prior marketing materials and communications, the company’s securities continued to trade at artificially inflated prices throughout the Class Period.
Finally, on August 1, 2019, the New York Post published an article entitled Canada Goose pulls claims about its ethical treatment of animals (the New York Post Article). According to the New York Post Article, Canada Goose had abandoned its claims of ethical treatment of animals used in making its winter jackets and clothing in response to the FTCs regulatory review. The New York Post article also reported PETAs assertion that its complaint to the FTC in 2017 had precipitated the FTCs investigation into Canada Goose for potential violations of the FTC Act.
On this news, Canada Goose’s stock price fell $2.21 per share, or over 4.7%, to close at $44.58 per share on August 1, 2019
If you purchased Canada Goose securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Canada Goose lawsuit, please go to https://bespc.com/goos. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.