L Brands, Inc. (LB)


Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In L Brands, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in L Brands, Inc. ("L Brands" or the "Company")(NYSE:LB) of the September 23, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in L Brands stock between May 31, 2018 and November 19, 2018 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.

The lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of all those who purchased L Brands common stock between May 31, 2018 and November 19, 2018 (the "Class Period"). The case, Walker v. L Brands, Inc. et al., No. 19-cv-03186 was filed on July 23, 2019, and has been assigned to Judge Sarah D. Morrison.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that L Brands’ Victoria’s Secret and PINK businesses began to experience deteriorating operating performance due to, among other things, increased competition from new lingerie brands.

Specifically, in an attempt to drive sales and retain market share in the face of increasing competition, Victoria’s Secret and PINK engaged in heavy promotional activities by offering consumers large discounts and even giving items free of charge. While this marketing strategy helped to mitigate sales declines, it adversely impacted the Company’s profit margins and cash flows and had a deleterious impact on the Company’s liquidity. In response to questions from securities analysts about the sustainability of the Company’s dividends, defendants repeatedly stated that L Brands had sufficient cash flow and cash on hand to sustain its dividends and that the Company, "in its history, ha[d] never reduced the dividend."

Then, after the market closed on November 19, 2018, L Brands issued a press release announcing its financial results for the 2018 third quarter ending on November 3, 2018. The press release also announced that L Brands intended to reduce its annual ordinary dividend to $1.20 from $2.40 beginning with the quarterly dividend to be paid in March 2019 in order to deleverage.

On this news, L Brands's share price fell from $34.55 per share on November 19, 2018 to a closing price of $28.43 on November 20, 2018: a $6.12 or a 17.71% drop.

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L Brands, Inc.

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Details

Filed on 07/26/2019

Ticker NYSE:LB

Lead Plaintiff Deadline 09/23/2019

Office

685 Third Avenue 26th Floor

10017 New York, New York

Phone (212) 983-9330

Fax (212) 983-9331

Counsel

Richard W. Gonnello rgonnello@faruqilaw.com Phone (212) 983-9330 Fax (212) 983-9331

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