NEW YORK, October 3, 2022 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Kohl’s Corporation (“Kohl’s” or the “Company”) (NYSE: KSS) and certain of its officers. The class action lawsuit, filed The United States District Court for the Eastern District WisconsinNo. 22-cv-01016, is on behalf of a class consisting of all persons and entities other than the Defendants who purchased or otherwise acquired securities between Kohl’s October 20, 2020 and May 19, 2022both days inclusive (the “Collection Period”), seeking damages caused by the Defendants’ violations of the federal securities laws and remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated below, against the company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired Kohl’s securities during the Class Period, you have until November 1, 2022 to ask the court to appoint you as lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this promotion, contact Robert S Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW) toll free, ext. 7980. Persons inquiring by email are asked to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Kohl’s is a retail company in the United States. The Company offers branded apparel, footwear, accessories, beauty and home products through its stores and website.
in the October 2020, Kohl’s announced that it has adopted a new strategic framework to “drive sales growth,” “expand operating margin” and become “the most trusted retailer of choice for active and casual lifestyles” (the “Strategic Plan”) . . Specifically, the strategic plan included “new initiatives to position the company for long-term success,” including “be[ing] the destination for active, casual and beauty for the whole family from the most trusted brands that always deliver quality and discovery,” “Lead[ing] with loyalty and value through a world-class rewards program” and “offer[ing] a differentiated omnichannel experience that’s simple and inviting, no matter how customers choose to shop.” Additionally, Kohl’s announced that the company is “focused on driving profitability with a goal of growing its operating margin to 7% to 8% % increase”. In announcing the strategic plan, the company touted its reportedly strong customer base, industry-leading loyalty and loyalty card programs, high volume of deals, and a large and growing digital business.
The lawsuit alleges that the defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies during the class-action period. In particular, the defendants made false and/or misleading statements and/or failed to disclose the following: (i) Kohl’s strategic plan was not well tailored to achieve the Company’s stated goals; (ii) the defendants also overstated the Company’s success in implementing its strategic plan; (iii) Kohl’s had deficient disclosure controls and procedures, internal controls over financial reporting and corporate governance mechanisms; (iv) as a result, the Company’s Board of Directors was able to withhold from shareholders material information regarding the condition of Kohl’s in advance of the Company’s annual general meeting; (v) all of these, once discovered, would be likely to have a material adverse effect on Kohl’s financial condition and reputation; and (vi) as a result, the Company’s public statements have been materially false and misleading at all relevant times.
On May 19, 2022Kohl’s issued a press release announcing the company’s first-quarter 2022 results, which included net sales expected to grow just 1% (compared to Wall Street consensus growth of 1.94%) and earnings per share of is expected $0.11 (missing estimates from $0.59), a revenue number that just beat expectations, and the company’s decision to cut its full-year earnings guidance. These results conflicted with defendants’ accounts of the successful execution of the company’s strategic plan, which was allegedly designed to drive revenue growth and position the company for long-term success. In addition, the press release quoted the defendant, Kohl’s chief executive officer Michelle Gasswho explained in the relevant part: ”
Then next May 20, 2022Macellum Advisors GP, LLC (“Macellum”), “a long-term holder of nearly 5% of Kohl’s outstanding common stock,” issued a statement stating ”
As a result of this news, Kohl’s share price fell $5.84 per share or 12.97% at close $39.20 per share May 20, 2022.
Pomerantz LLP, with offices in new York, Chicago, los Angeles, Parisand Tel Aviv, is recognized as one of the leading law firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as Dean of the Class Chamber, Pomerantz pioneered securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he founded and fights for the rights of victims of securities fraud, fiduciary breaches and corporate wrongdoing. The firm has recovered numerous multi-million dollar claims on behalf of group members. See www.pomlaw.com
Robert S Willoughby
888-476-6529 ext. 7980
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