According to the Complaint, Revlon purports to manufacture, market, distribute, and sell beauty and personal care products worldwide.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Revlon failed to create measures to monitor its enterprise resource planning (“ERP”) system appropriately once implemented; (2) Revlon failed to design, implement and consistently operate effective process-level controls to ensure that it appropriately (a) recorded and accounted for inventory, accounts receivable, net sales and cost of goods sold, (b) reconciled balance sheet accounts, (c) reviewed and approved the complete population of manual journal entries, and (d) used complete and accurate information in performing manual control, which constituted a material weakness in its internal controls over financial reporting; (3) as a result of the poor preparation and planning of the implementation of the ERP system, Revlon was unable to fulfill product shipments of approximately $64 million of net sales and the Company incurred $53.6 million of incremental charges to remediate the decline in customer services levels; and (4) as a result, Defendants’ statements about Revlon’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
On July 30, 2019, the Court issued an Order appointing Lead Plaintiffs and Counsel. On November 11, Lead Plaintiffs voluntarily dismissed two of the individual Defendants and filed an amended Complaint. Defendants filed a Motion to Dismiss for failure to state a claim on February 7, 2020. On September 17, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Plaintiffs did not file an amended Complaint, and on October 13 the case was dismissed with prejudice.