The Gap, Inc. (NYSE: GPS) Securities Fraud Class Action

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 District Court granted Defendants’ Motion to Dismiss, and on April 30, 2025, Lead Plaintiffs appealed the dismissal to the United States Court of Appeals for the Second Circuit. On May 28, 2026, the Second Circuit Court affirmed the District Court’s decision to dismiss the case. This action has concluded.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.