According to the law firm press release, Urban Outfitters engages in the retail and wholesale of general consumer products in the United States, targeting the younger millennial age demographic.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects and/or failed to disclose the following adverse facts: (a) Urban Outfitters’ comparable sales growth had significantly declined, particularly in its all-important Urban Outfitters group; (b) as a results of declining sales, Urban Outfitters was forced to offer an additional 30% off all clearance items during Labor Day weekend 2013, something it had not been forced to do during the prior year Labor Day weekend; and (c) as a result of the foregoing, the Company was not on track to achieve the financial results defendants had led the market to expect during the Class Period.
On September 9, 2013, the Company disclosed its second quarter 2014 financial results and commented on third quarter 2014 expectations, reporting that comparable sales at the Company’s important Urban Outfitters Group had grown only 5.2% in the 2014 second quarter – far less than the 9% defendants’ comments had led the investment community to expect – and that 2014 second quarter markdowns had resulted in a “lower average unit selling price,” lowering overall sales revenues and profits. Critically, defendants also issued disappointing third quarter guidance. On this news, the price of Urban Outfitters common stock, which had traded above $44 per share in intraday trading during the Class Period, fell approximately 13% from that level to close at $38.35 per share on September 10, 2013, erasing more than $837 million in market capitalization from the stock’s Class Period high.
On January 7, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed the amended complaint on March 10.
On May 4, 2015, the Court issued an Order denying Defendants' Motion to Dismiss.
On June 8, 2016, the parties entered into a Stipulation of Settlement. Preliminary approval was granted July 11. Final judgment was entered October 31.