The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against The Gap, Inc. (GPS)
On April 21, 2022, after the market closed, the Company announced that the CEO of Old Navy, Nancy Green, had stepped down.
The Law Offices of Frank R. Cruz reminds investors of the upcoming February 3, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired The Gap, Inc. (“Gap” or the “Company”) (NYSE: GPS) securities between November 24, 2021 and July 11, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On April 21, 2022, after the market closed, the Company announced that the CEO of Old Navy, Nancy Green, had stepped down. On this news, Gap’s stock price fell $2.57 per share, or 17%, to close at $11.72 per share on April 22, 2022, thereby injuring investors.
Then, on May 20, 2022, The Wall Street Journal published an article stating that Old Navy’s inclusive, extended sizing campaign, BODEQUALITY, had resulted in “too many extra-small and extra-large items and too few of the rest, a mismatch that frustrated customers and contributed to falling sales and a management shake-up.” The article also pointed out that Old Navy accounts for 54% of Gap’s sales and roughly 80% of the profits, and that Gap had warned that spring quarter sales would fall short of expectations because of troubles at Old Navy. On this news, Gap’s stock price fell $0.86, or 7.7%, to close at $10.33 per share on May 23, 2022, thereby injuring investors.
Then, on May 27, 2022, the Company released its first quarter 2022 financial results, admitting that the results had been “impacted by execution missteps in size and assortment at Old Navy related to BODEQUALITY,” as well as global supply chain disruptions. On this news, Gap’s stock price fell 4.9% to close at $11.03 per share on May 31, 2022.
Then, on July 11, 2022, after market hours, Gap announced that its President and CEO was stepping down from her position and had resigned from the Board of Directors. On this news, Gap’s stock price fell $0.44, or 5%, to close at $8.32 per share on July 12, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there were execution missteps in size and assortment at Old Navy related to BODEQUALITY which were adversely impacting Old Navy’s margins and financial results; (2) contrary to the Company’s statements, there were inventory risks relating to BODEQUALITY that were actually existing that were adversely affecting the Company’s operations; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Gapsecurities during the Class Period, you may move the Court no later than February 3, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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