Case Page

 

Case Status:    SETTLED
On or around 05/02/2017 (Date of order of distribution of settlement)

Filing Date: October 11, 2011

According to a press release dated October 11, 2011, the Defendants violated sections of the Securities Exchange Act of 1934.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, Defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing declining demand for its women’s fashion division, which makes up 70% of the Company’s sales; (ii) that the Company was enduring pressure on its profit margins as a result of increasing inventory and higher discounts on its clothing; and (iii) that, as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

On August 4, 2011, the Company provided a business update for the second quarter of 2011. For the quarter, the Company reported net sales of $468.2 million, a decrease of 5% from the second quarter of 2010, and expected net earnings to be in the range of $0.02 to $0.03 per share – well below the Company’s guidance of $0.11 to $0.16 per share. In reaction to the Company’s announcement, on August 4, 2011, the price of the Company’s stock fell $3.99 per share, or 24%, to close at $12.53 per share, on extremely heavy trading volume.

According to a minute entry for proceedings held before Judge Colleen McMahon on January 11, 2012, lead plaintiff and lead counsel were appointed.

On February 10, 2012, plaintiffs filed an amended complaint.

On March 25, 2013, the Court issued an Order denying Defendant's motion to dismiss.

On July 17, 2013, the Court issued an Order certifying a class in this Action.

On January 29, 2014, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved on January 30. On May 14, 2014, the Court granted final approval of the Settlement and dismissed this case with prejudice.

On June 6, 2014, a Notice of Appeal of the above Order dismissing this case was filed. The Court of Appeals issued its Mandate on July 9, 2015, and affirmed the decision of the District Court.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: ARO
Company Market: New York SE
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: S.D. New York
DOCKET #: 11-CV-07132
JUDGE: Hon.Colleen McMahon
DATE FILED: 10/11/2011
CLASS PERIOD START: 02/03/2011
CLASS PERIOD END: 08/03/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Berens LLP
    303 East 17th Avenue, Suite 300, Dyer & Berens LLP, CO 80203
    303.861.1764 303.861.1764 ·
  2. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 11-CV-07132
JUDGE: Hon.Colleen McMahon
DATE FILED: 02/10/2012
CLASS PERIOD START: 03/11/2011
CLASS PERIOD END: 08/18/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (Main office, Philadelphia)
    Two Commerce Square, 2001 Market Street, Suite 3300 , Barrack, Rodos & Bacine (Main office, Philadelphia), PA 19103
    215.963.0600 215.963.0838 · info@barrack.com
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date