Target investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Target operates general merchandise discount stores throughout the U.S. The Company sells a wide variety of household essentials, music and movies, electronics, clothing, and other items, through its traditional stores, its website, and via direct shipment from vendors or third-parties. On January 13, 2011, Target announced that it would expand its retail operations into Canada, with plans to open between 100 and 150 stores in the country during 2013 and 2014.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements relating to the Canadian expansion efforts and operations. Specifically, the complaint alleges that the defendants misrepresented or failed to disclose that: (a) at the time of the opening of its first group of stores in Canada, Target had significant problems with its supply chain infrastructure, distribution centers, and technology systems, as well as inadequately trained employees, problems that persisted throughout the Class Period; (b) these problems caused significant, pervasive issues, including excess inventory at distribution centers and inadequate inventory at retail locations; (c) this excess inventory at distribution centers and lack of inventory at retail locations forced Target to heavily discount products, incurring heavy losses; (d) these supply-chain and personnel problems were not typical of newly launched locations in Target’s traditional U.S.-based market; (e) as a result, the defendants’ statements about the company, its financial condition, and the outlook for its business, including statements about Target Canada, lacked a reasonable basis when made.
According to the complaint, on August 21, 2013 Target announced its results for the second quarter of 2013, including weak guidance for full-year earnings per share for 2013. Although CEO Steinhafel sought to reassure investors that the poor performance was of “the same kind” that Target saw “every time we open a new store here in the United States,” Target’s stock price declined by $2.45 per share, or 3.61 percent.
Then, on November 21, 2013, Target released downbeat results for the third quarter of 2013, including news that the company’s Canadian segment had suffered a drop in operation margin from rates exceeding 30 percent in prior quarters to only 14.8 percent due to the need to aggressively discount merchandise. Following this news, Target’s stock price declined by $2.30 per share, or 3.46 percent.
Finally, on January 15, 2015, Target revealed the company would discontinue its Canadian operations and that Target Canada Co. had filed for bankruptcy protection in Canada. Following this news, Target stock declined $1.63 per share, or 2.1 percent
If you are a member of the class described above, you may no later than July 18, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
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