Robbins LLP: J.Jill, Inc. (JILL) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against J.Jill, Inc. (NYSE: JILL). The complaint is brought on behalf of all purchasers of J.Jill securities pursuant to the company’s March 9, 2017 initial public offering (“IPO”), for alleged violations of the Securities Act of 1933 by J.Jill’s officers and directors. J.Jill operates as a specialty retailer of women’s apparel under the J.Jill brand in the United States.
J.Jill Accused of Masking the Company’s True Financial Condition
According to the complaint, J.Jill officials represented that the company was insulated from adverse trends impacting the retail sector. The company’s registration statement stated that J.Jill’s “customer-focused strategy, foundational investments and data insights have resulted in consistent, profitable growth” and would “continue to drive profitable sales growth over time.” The registration statement further noted that the target demographic for the company’s product made it unlikely that its customers would switch to competing brands. In reality, J.Jill was quite susceptible to adverse trends in the retail industry because its historic gross margin growth was not sustainable, it was carrying increasing amounts of slow moving inventory, and its brick-and-mortar stores were failing. J.Jill had been suffering from difficulty attracting customers and maintaining profitability, ultimately leading the company to close eight stores in fiscal 2017. J.Jill’s stock closed at $4.86 per share on October 12, 2017, more than 62% below its offering price only seven months after the IPO.
J.Jill Shareholders Have Legal Options
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