Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired The Gap, Inc. (“Gap”) (NYSE: GPS) securities between November 24, 2021 and July 11, 2022, inclusive (the "Class Period").
Gap is an American clothing retailer that owns several prominent brands, including Old Navy, which was Gap’s largest revenue producer. In August 2021, after Old Navy eliminated its separate plus-sized lines for women, it instead started carrying a full complement of sizes for every clothing item in its stores. This initiative was referred to as BODEQUALITY.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) there were execution missteps in size and assortment at Old Navy related to BODEQUALITY which were adversely impacting Old Navy’s margins and financial results; (2) contrary to the company’s statements, there were inventory risks relating to BODEQUALITY that were adversely affecting the company’s operations; and as a result (3) the company’s statements during the Class Period about the historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of the company, and were materially false and misleading, and lacked a factual basis at all relevant times.
Current Status of Case:
On March 31, 2025, the Court granted Defendants’ Motion to Dismiss. On April 30, 2025, Lead Plaintiffs filed a Notice of Appeal to the United States Court of Appeals for the Second Circuit. The appeal is ongoing.
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