According to the Complaint, this is a securities class action on behalf of all persons or entities who purchased
or otherwise acquired Skechers common stock between April 23, 2015 and October 22, 2015, inclusive (the “Class Period”). The action is brought against Skechers and certain of its officers and/or directors for violations of the Securities Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 10b-5 promulgated thereunder.
The Complaint alleges that during the Class Period, Skechers repeatedly touted the strength of customer demand within the Domestic Wholesale segment, which the Company claimed would spur continued sales growth. Skechers frequently emphasized that its Domestic Wholesale segment growth would continue into the second half of 2015 based on pending orders and meetings with key customers. The Complaint further alleges that Defendants’ Class Period statements pertaining to back-half 2015 customer demand and sales growth related thereto were materially false and misleading because Defendants failed to disclose that: (1) the Company’s Domestic Wholesale customers took early receipt of fall 2015 inventory, causing them to delay receipt of and, in some cases, cancel pending orders scheduled for delivery in the second half of 2015; (2) as a result of the foregoing, the Company’s Domestic Wholesale growth rate was unsustainable; and (3) the Company’s positive statements about its business, operations, and prospects lacked a reasonable basis.
On January 19, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. On April 4, Lead Plaintiff filed an amended consolidated Complaint. On April 13, Lead Plaintiff filed a corrected amended Complaint. Lead Plaintiff filed a second amended consolidated Complaint on July 24. Defendants filed a Motion to Dismiss the second amended consolidated Complaint on November 21. On September 23, 2019, the Court issued an Order granting Defendants' Motion to Dismiss and closed the case. Lead Plaintiff filed a notice appealing the Court's dismissal Order on October 22.