According to a press release dated November 6, 2009, the complaint charges Limited Brands and certain of its officers and directors with violations of the Exchange Act. Limited Brands is a specialty retailer of women’s intimate and other apparel, beauty and personal care products and accessories under various trade names, including Victoria’s Secret. The Company sells merchandise through retail stores, which are primarily mall-based, in the United States and Canada, and through websites and catalogues.
The complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company’s financial condition, business and prospects. The complaint further alleges that these statements were materially false and misleading when made because defendants failed to disclose adverse events surrounding the development of a new warehouse and certain technology.
On February 27, 2008, Limited Brands issued a press release reporting fourth quarter and full year 2007 earnings. This press release significantly lowered the Company’s previously issued guidance for 2008. In response to the announcement, the price of Limited Brands common stock fell from $17.82 on February 27, 2008 to $15.85 on February 28, 2008 on heavy trading volume.
On April 5, 2010, Judge Edmund A. Sargus granted the motion to appoint the Plumbers and Pipefitters Locals 502 & 633 Pension Trust Fund as lead plaintiff and approved its selection of Robbins Geller Rudman & Dowd LLP as lead counsel and Murray Murphy Moul + Basil LLP as liaison counsel. On June 25, 2010, the lead plaintiff filed an Amended Class Action Complaint. The defendants responded by filing a motion to dismiss on August 24, 2010.
On March 29, 2011, Judge Edmund A. Sargus granted the defendants’ motion to dismiss the Amended Class Action Complaint. The action is now dismissed with prejudice and the case is closed.