According to the Complaint, Capri Holdings Limited is a fashion firm. Capri owns fashion brands such as Michael Kors, Jimmy Choo, and Versace. This class action was filed against Capri and two of its Officers in addition to Tapestry, Inc. and two of its Officers.

On August 10, 2023, Capri and Tapestry jointly announced their entry into the Merger Agreement, pursuant to which Tapestry would purchase Capri for $57 per share in cash. On September 20, 2023, Capri filed a Definitive Proxy Statement for the Capri Acquisition with the SEC to solicit shareholder approval of the Merger Agreement. On October 25, 2023, Capri announced that its shareholders had voted to approve adoption of the Merger Agreement.

On April 22, 2024, the FTC brought an action to enjoin the Capri Acquisition in the United States District Court for the Southern District of New York, and subsequently moved for a preliminary injunction on August 6, 2024. The FTC alleged that, if allowed, the Capri Acquisition would eliminate direct head-to-head competition between Kate Spade, Coach, and Michael Kors. On October 24, 2024, the court granted the FTC’s motion for preliminary injunction and blocked the Capri Acquisition.

The Complaint alleges that during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the accessible luxury handbag market is a distinct and well-defined market within the overall handbag market and understood as such by the individual Defendants, as well as by other Capri and Tapestry executives; (ii) Capri and Tapestry maintained analogous production facilities and supply chains for their accessible luxury handbags that were distinct from the production facilities and supply chains used to manufacture luxury or mass market handbags, confirming that the accessible luxury handbag market is distinct from the mass market and luxury handbag markets; (iii) Capri and Tapestry internally considered Coach and Michael Kors to be each other’s closest and most direct competitors; (iv) that, conversely, Capri and Tapestry did not internally consider their handbag brands to be in direct competition with luxury handbags or mass market handbags; (v) a primary internal rationale for the Capri acquisition was to consolidate prevalent brands within the accessible luxury handbag market so as to reduce competition, increase prices, improve profit margins, and reduce consumer choice within that market; and (vi) as a result of the above, the risk of adverse regulatory actions and/or the Capri acquisition being blocked was materially higher than represented by Defendants.

On March 7, 2025, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the Lead Case 24-CV-01410.

Lead Plaintiff filed a Consolidated Complaint on May 15, 2025. Defendants filed Motions to Dismiss the Consolidated Complaint on July 14.