According to the law firm press release, Tailored Brands, Inc. is the holding company for The Men’s Wearhouse, Inc. The Company operates as a specialty apparel retailer in the United States, Puerto Rico, and Canada.
On June 18, 2014, the Company announced the completion of its acquisition of Jos. A. Bank Clothiers, Inc. for $65.00 per share in cash. On that day, shares of the Company closed at $55.86 per share.
After the close of trading on November 5, 2015, the Company provided investors with preliminary third quarter results and an updated fiscal year 2015 outlook. Investors were told that there was “significant comparable sales weakness at Jos. A. Bank. During the third quarter comparable sales decreased 14.6% at Jos. A. Bank, far below the Company's earlier expectations. This decrease was primarily driven by a decline in traffic as the Company began the transition away from the Buy-One-Get-Three promotional events.”
In addition, fourth quarter comparable sales at Jos. A. Bank were expected to be down between 20-25% from the prior year’s fourth quarter, which coincides with the busy holiday selling season. As a result of this shocking disclosure, shares of Tailored Brands, Inc. (known as The Men’s Wearhouse, Inc. at the time), collapsed, closing at $22.70, down $19.40, on extremely high volume. This 48% decline represented a market capitalization decline of $938 million.
On December 9, 2015, after the close, the Company released third quarter earnings that were even worse than previously expected just weeks earlier. Additionally, same-store sales at Jos. A. Bank in the fourth quarter were actually tracking to be down over 35%. On this news, shares closed at $15.27, down an additional $3.30 per share.
An amended Complaint was filed on May 26, 2017. Defendants filed a Motion to Dismiss the amended Complaint on July 28. On March 31, 2018, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to file an amended Complaint. On April 30, Lead Plaintiff filed a notice of its intent not to further amend its Amended Complaint. On June 13, the Court issued a Final Order of Dismissal.