Plaintiff's law firm issued a press release announcing the lawsuit on September 4, 2018. According to the press release, Skechers is a global footwear company that designs and markets branded footwear for men, women and children. The Company sells its footwear in department, specialty and independent stores, as well as through more than 2,600 retail stores and its online websites. Beyond the United States, Skechers product is available in more than 170 countries and territories through an international network of subsidiaries.
The Complaint asserts claims for violations of the Securities Exchange Act of 1934 and alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, prospects and financial health. Specifically, Defendants failed to disclose that: (1) Skechers lacked the operational infrastructure to handle demand and sustain true sales growth in its international markets; (2) Skechers was relying on expensive, third-party operational solutions to drive its international sales growth; (3) Skechers’ expenses would outgrow sales for the foreseeable future; (4) Skechers’ international sales growth was not sustainable without such outgrown expenses; and (5) as a result of the foregoing, Defendants’ statements about Skechers’ business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On November 20, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. The cases are to be captioned "In re Skechers USA, Inc. Securities Litigation." Lead Plaintiff filed a consolidated amended Complaint on January 22, 2019. Defendants filed a Motion to Dismiss the consolidated amended Complaint on May 13. On March 12, 2020, the Court issued an Order granting Defendants' Motion to Dismiss.