Skechers U.S.A., Inc. (SKX) Accused of Misleading Investors About Its Potential for Global Growth
According to the complaint against the company’s officers and directors for alleged breaches of fiduciary duty, insider trading and misappropriation of information, and waste of corporate assets between October 19, 2017 and July 19, 2018, Skechers U.S.A., Inc. (SKX) officials touted the company’s strong sales growth while having no regard for the unsustainable increases in expenses. Although Skechers led investors to believe that the company would continue to see strong growth on a global scale, in reality, Skechers did not have the operational infrastructure to meet the demand for its products in many of its international markets. The truth began to emerge on April 19, 2018, when Skechers reported expense growth of 23.4% from the previous year compared to only 16.5% in sales growth. On July 19, 2018, Skechers announced that expenses grew by nearly 20%, causing earnings from operations to decrease by 5.7% and net earnings to decline by almost 24%. Since news of Skechers’ troubles first became public, its stock has fallen 37% to close at $26.56 per share on November 29, 2018.
Skechers U.S.A., Inc. (SKX) Shareholders Have Legal Options
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