NEW YORK, June 12, 2019 /PRNewswire/ -- Bernstein
Liebhard LLP, a nationally acclaimed investor rights law firm,
announces that a securities class action lawsuit has been filed on
behalf of shareholders of Ascena Retail Group, Inc. ("Ascena" or
the "Company") (NASDAQ: ASNA) between September 16, 2015, and June 8, 2017 both dates inclusive, (the "Class
Period"). The lawsuit was filed in the United States District Court for the
District of New Jersey to recover
damages for Ascena investors under the Securities Exchange Act of
1934. If you wish to serve as lead plaintiff, you must move
the court no later than August 6,
2019. A lead plaintiff is a representative party acting on
behalf of other class members in directing the litigation. Your
ability to share in any recovery doesn't require that you serve as
lead plaintiff. If you take no action, you may remain an absent
class member.
If you purchased Ascena securities, and/or would like to
discuss your legal rights and options please visit Ascena ASNA
Class Action Lawsuit or contact Matthew E.
Guarnero toll free at (877) 779-1414 or
MGuarnero@bernlieb.com.
According to the lawsuit, throughout the Class Period,
Defendants failed to disclose that the Ann Taylor and LOFT
Acquisition ("Ann Acquisition") was a complete disaster for the
Company as Ann Inc.'s ("Ann") operations were in far worse
condition than had been represented to the public; that, in order
to mask the true condition of Ann, defendants improperly delayed
recognizing an impairment charge to the value of Ann's goodwill
and, as a result, Ascena's reported income and assets were
materially overstated and the Company's financial results were not
prepared in conformity with Generally Accepted Accounting
Principles ("GAAP"); and that many of the brands acquired in the
Ann Acquisition were in steep decline and were also materially
overvalued on Ascena's Class Period financial statements.
The truth began to be revealed to the market on September 19, 2016, when Ascena filed a form 10-K
with the Securities and Exchange Committee ("SEC") and held an
earnings call where they reduced earnings guidance for the
Company. In response to these announcements, the price of
Ascena stock fell from $8.12 per
share on September 19, 2016 to
$5.69 per share on September 20, 2016.
On May 17, 2017, Ascena issued a
press release revising its third quarter and full year fiscal 2017
sales and earnings outlook. The press release also noted that the
Company would be taking an impairment charge but failed to quantify
the amount. In response to this announcement, the price of
Ascena stock dropped from $2.82 per
share to $2.06 per share, a decline
of 26%.
On June 7, Ascena issued a press
release detailing its third quarter financial results. The
Company reported a GAAP loss of $5.29
per diluted share compared to net earnings of $.08 per diluted share in the year-ago period.
Further, comp sales were down 8% and non-GAAP EPS was $.05. The press release further stated that
"[T]he loss in the current quarter includes a non-cash pre-tax
impairment charge of $1.324 billion
(after tax impact of ($5.22 per
diluted share) to write down a portion of the Company's goodwill
and other intangible assets." During the twenty-two days between
when the Company announced its intention to take the impairment
until after they announced the amount of the impairment, the price
of Ascena stock fell another 35% or $1.00 per share before it closed on June 8, 2017 at $1.82 per share.
If you purchased Ascena securities, and/or would like to
discuss your legal rights and options please visit
https://www.bernlieb.com/cases/ascenaretailgroup-asna-shareholder-class-action-lawsuit-stock-140/or
contact Matthew E. Guarnero toll
free at (877) 779-1414 or MGuarnero@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over
$3.5 billion for its clients. In
addition to representing individual investors, the Firm has been
retained by some of the largest public and private pension funds in
the country to monitor their assets and pursue litigation on their
behalf. As a result of its success litigating hundreds of lawsuits
and class actions, the Firm has been named to The National
Law Journal's "Plaintiffs' Hot List" thirteen times and
listed in The Legal 500 for ten consecutive
years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Matthew E. Guarnero
Bernstein Liebhard LLP
http://www.bernlieb.com
(877) 779-1414
MGuarnero@bernlieb.com
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