Urban Outfitters, Inc. Sued by Investors After Stock Drops 14% on Weak 2Q 2014 Results and Disappointing 3Q 2014 Guidance
Robbins LLP announces that an investor of Urban Outfitters, Inc. (NASDAQ: URBN) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between March 12, 2013 and September 9, 2013 (the “Class Period”).
Urban Outfitters Accused of Misleading Investors Regarding Sales Growth
Shares of Urban Outfitters fell $3.82 per share, or more than 14%, on September 10, 2013, after the company disclosed that second quarter 2014 sales in the company’s Urban Outfitters Group had grown only 5.2%, rather than the 9% that defendants led the market to expect. In addition, the company revealed that overall sales revenues and profits were down because of markdowns in the quarter.
According to the complaint, defendants made false and/or misleading statements and failed to disclose material adverse facts about the company’s business, operations, and prospects. Defendants failed to inform investors that the company was aware of significant declines in comparable sales growth in its Urban Outfitters Group and, as a result, Urban Outfitters was forced to discount all clearance items by an additional 30% during Labor Day weekend 2013.
If you invested in Urban Outfitters and would like to discuss your shareholder rights please contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.