Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $250,000 Investing In Target Corp. To Contact The Firm Before Lead Plaintiff Deadline
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Target Corp. (“Target” or the “Company”) (NYSE:TGT) of the July 18, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Minnesota on behalf of all those who purchased or otherwise acquired Target common stock between February 27, 2013 and May 19, 2014 (the “Class Period”). The case, Police Retirement System of St. Louis v. Target Corporation et al, No. 0:16-cv-01315 was filed on May 17, 2016.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements regarding the Company’s launch of its operations in Canada. The Company failed to disclose the following facts: (a) at the time of the opening of its stores in Canada, Target had significant problems with its supply chain infrastructure, distribution centers, and technology systems; (b) these problems caused significant issues, including excess inventory at distribution centers and inadequate inventory at retail locations; (c) this excess inventory at distribution centers and lack of inventory at retail locations forced Target to heavily discount products, incurring heavy losses; (d) these supply-chain and personnel problems were atypical of newly launched locations in Target’s traditional U.S.-based market; (e) as a result, statements about the Company, its financial condition, and the outlook for its business lacked a reasonable basis.
Specifically, on August 21, 2013, Target announced its results for the second quarter of 2013, including weak guidance for full-year earnings per share for 2013. On this news, Target’s share price fell from $67.95 per share on August 20, 2013 to a closing price of $65.50 on August 21, 2013 —a $2.45 or a 3.61% drop.
Then, on November 21, 2013, Target released results for the third quarter of 2013, including news that the Company’s Canadian segment had suffered a drop in operation margin from rates exceeding 30 percent in prior quarters to only 14.8 percent due to the need to aggressively discount merchandise. On this news, Target’s share price fell from $66.49 per share on November 20, 2013 to a closing price of $64.19 on November 21, 2013 —a $2.30 or a 3.46% drop.
Additionally, on May 5, 2014, Target announced that its CEO, Gregg Steinhafel, the architect of the Company’s Canadian expansion, would leave the Company effective immediately, without any clear successor. On this news, Target’s share price fell from $62.01 per share on May 2, 2014 to a closing price of $59.87 on May 5, 2014 —a $2.14 or a 3.45% drop.
Lastly, on January 15, 2015, Target revealed the Company would discontinue its Canadian operations and that Target Canada Co. had filed for bankruptcy protection in Canada.
If you invested in Target stock or options between February 27, 2013 and May 19, 2014 and would like to discuss your legal rights, please fill out the form below or contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Target’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you.
* The submission of this form does not create an attorney-client relationship.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.