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Case Status:    DISMISSED    
On or around 06/17/2011 (Notice of voluntarily dismissal)

Filing Date: March 31, 2011

According to a press release dated April 1, 2010, the Complaint alleges that, during the Class Period, Defendants discussed an emerging shift in fashion trends that Defendants represented was an opportunity for the Company and represented to investors that the Company would be able to manage the trend, that the Company had effective inventory management controls and systems, and that Urban Outfitters inventory would "grow more in-line with sales growth."

It is alleged, however, that by the beginning of the Class Period, Defendants knew, or had reason to know, that the Company was not managing the shift in fashion trends because: (1) the Company's inventories were increasing materially more than sales, (2) sales at the Company's namesake Urban Outfitters store and Anthropologie division were materially declining due to lack of customer demand, especially for women's apparel, and (3) as a result, the Company was forced to mark down the price of inventory which materially adversely affected the Company's margins and financial results for the quarter ended January 31, 2011.

The Complaint further alleges that on March 7, 2011, investors in Urban Outfitters' stock learned the truth about the Company when, after the close of trading, Defendants disclosed the Company's financial results for the quarter ended January 31, 2011. Among other things, the Company disclosed i) earnings of $75 million or $0.45 per share for the fourth quarter, which was approximately 13% less than the $0.52 per share expected by analysts; ii) that gross profit margin materially declined, primarily due to increased merchandise markdowns to clear seasonal inventory associated with changing women's apparel fashion trends; and iii) retail inventories increased by 10% at cost while total comparable store inventory increased by 4% at cost and total inventories grew by $43 million or 23%, on a year-over-year basis.

On March 8, 2011, Urban Outfitters shares declined from a close on March 7, 2011 of $37.99 per share, to close at $31.66 per share, a decline of $6.33 per share or approximately 17% on heavier than usual volume.

On June 17, 2011, both parties filed a joint Stipulation of Voluntary Dismissal without prejudice to either party. Each party assumed responsibility for their legal costs. The Court terminated the case effective on the same date.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Apparel)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: URBN
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Pennsylvania
DOCKET #: 11-CV-02292
JUDGE: Hon. Gene E.K. Pratter
DATE FILED: 03/31/2011
CLASS PERIOD START: 11/15/2010
CLASS PERIOD END: 03/07/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kaplan Fox & Kilsheimer, LLP (New York)
    850 Third Avenue, 14th Floor, Kaplan Fox & Kilsheimer, LLP (New York), NY 10022
    212.687.1980 212.687.1980 ·
  2. Levin Fishbein Sedran & Berman (Philadelphia)
    510 Walnut Street , Suite 500, Levin Fishbein Sedran & Berman (Philadelphia), PA 19106
    215.592.1500 215.592.1500 · info@lfsblaw.com
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