According to a press release dated April 14, 2009, the complaint charges Coach and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Coach engages in the design and marketing of accessories and gifts for men and women in the United States and internationally.
The complaint alleges that during the Class Period, defendants reported strong growth for the Company and forecast similar growth going forward. However, defendants failed to disclose that the Company’s growth rate was, in fact, unsustainable. Then, on October 23, 2007, before the market opened, Coach announced that although its fiscal first-quarter profit rose 23%, traffic in its U.S. retail stores was weak and the Company expected a slow-down in the coming holiday season. As a result of this announcement, Coach’s stock price dropped $4.87 per share (or 12%) to close at $36.60 per share on October 23, 2007.
On January 22, 2010, the plaintiff’s Motion for Appointment as Lead Plaintiff and Approval of Lead Plaintiff s Selection of Lead Counsel was granted by the Court.
On April 19, 2010, the parties to this action submitted a Joint Stipulation and Order of Voluntary Dismissal pursuant to Rule 41(a) of the Federal Rules of Civil Procedure. The action was subsequently dismissed without prejudice as to Plaintiffs and Plaintiffs agreed not to file a further amended pleading or to seek further review or appeal in connection with the action.