SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Target Corporation (NYSE: TGT) common stock between August 18, 2021 and May 17, 2022, inclusive (the “Class Period”) have until May 30, 2023 to seek appointment as lead plaintiff in the Target class action lawsuit. Captioned Perez v. Target Corporation, No. 23-cv-00769 (D. Minn.), the Target class action lawsuit charges Target and certain of Target’s top executives with violations of the Securities Exchange Act of 1934.
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CASE ALLEGATIONS: Despite Target’s runaway success in 2020, Target’s revenue was constrained by its inability to keep its shelves fully stocked. To mitigate the risk that replenishment of in-demand goods could take longer than usual going into the second half of 2021, Target announced that it had been ordering larger upfront quantities in advance of season to ensure that shelves were stocked with products consumers wanted, when they wanted them.
But as the Target class action lawsuit alleges, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Target’s strategy for mitigating supply-chain constraints by over-ordering inventory had severely limited Target’s ability to timely respond to evolving consumer behavior; (ii) consequently, the purported “massive influx of insights” gained from the extraordinary heightened demand during the pandemic could not be leveraged by Target to react to rapidly changing trends; and (iii) as a result of Target’s inability to timely react to changes in consumer trends, Target’s sales declined and Target was left with an overabundance of inventory, forcing Target to take large markdowns, and severely impacting Target’s financial results.
On May 18, 2022, Target revealed that contrary to defendants’ public statements, Target’s “durable, flexible” business strategy was thwarted by its practice of ordering inventory before it was needed, resulting in overstocked, unsellable inventory taking up valuable store shelf space and leaving Target unable to quickly pivot to meet changing consumer preferences as represented. This resulted in Target’s inventory increasing by nearly $1.1 billion over the previous quarter and overweight in “bigger, bulkier” hardline and home products that Target was now forced to mark down to “make room for fast-growing categories.” Thus, Target’s revenue and gross margin declined nearly 19% and 4.3%, respectively, for the quarter and defendants also admitted that they expected the excess inventory to negatively affect earnings into the next quarter. On this news, Target’s stock price declined by nearly 25%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Target common stock during the Class Period to seek appointment as lead plaintiff in the Target class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Target class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Target class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Target class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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