SAN FRANCISCO, May 14, 2015 /PRNewswire/ -- Shareholder rights
law firm Schubert Jonckheer & Kolbe LLP (the "Schubert firm")
is investigating whether certain officers and directors of Urban
Outfitters, Inc. (NASDAQ: URBN) breached their fiduciary duties to
Urban Outfitters and its shareholders by engaging in allegedly
improper insider sales and/or misrepresenting information related
to slowing sales growth at Urban Outfitters brand stores during
the period March 12, 2013 through September 9, 2013 (the "Class Period").
In November 2013, a class
action was filed in the United States District Court for the
Eastern District of Pennsylvania,
alleging that various Urban Outfitters' officers,
including CEO Richard Hayne and CFO Frank Conforti, engaged in allegedly
improper insider sales of Urban Outfitters stock and
made numerous false and misleading statements regarding
sales trends during the Class Period.
On May 4, 2015, the class action
complaint was upheld over defendants' motion to dismiss. In
denying the motion to dismiss, the District Court wrote:
[P]laintiff alleges that… Hayne sold around 1.2 million shares
of common stock in Urban, for a total profit over $50 million.... Plaintiff alleges that Hayne's
stock sales were unusual in time and amount, because Hayne had not
sold any shares during the 18 months prior to the Class Period....
Plaintiff also alleges the amount of profit from Hayne's stock
sales was likely excessive compared to Hayne's ordinary
compensation. Conforti sold a total of 27,000 shares of common
stock.... The stocks sold by Conforti are valued at over
$1.1 million and amounted to more
than 99% of his holdings.... Similarly to Hayne, Conforti had not
sold any of his shares in Urban during the 18 months preceding the
Class Period.... Moreover, plaintiff alleges specific facts which
suggest motive and opportunity on the part of Conforti. Not only
did Conforti sell 99% of his holdings during the Class Period, but
the timing of his sale of 22,000 shares on September 3, 2013 is particularly suspicious. A
week after Conforti's sale, Urban made an announcement concerning
the third quarter sales growth, which disappointed the market and
resulted in a price drop in Urban stock....
If you are a long-term holder of Urban Outfitters stock and wish
to obtain additional information about the Schubert firm's
investigation and your legal rights, please contact Miranda Kolbe either via email at
mkolbe@schubertlawfirm.com by telephone at (415) 788-4220, or fill
out the form on our website
at http://classactionlawyers.com/urbanoutfitters.
About Schubert Jonckheer & Kolbe
The Schubert firm
has extensive experience in prosecuting securities claims,
representing investors throughout the nation in securities and
shareholder lawsuits. Attorney advertising. Prior
results do not guarantee similar outcomes.
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SOURCE Schubert Jonckheer & Kolbe LLP