RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased J.Jill, Inc. (NYSE: JILL) (“J.Jill” or the “Company”) securities in or traceable to the Company’s March 9, 2017 initial public offering (the “IPO”) (the “Class Period”).
J.Jill shareholders may, no later than December 12, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of J.Jill and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The complaint charges J.Jill, certain of its officers and directors, certain of the underwriters of the IPO and J.Jill’s controlling shareholder with violations of the Securities Act of 1933. J.Jill is a specialty apparel brand focused on affluent women in the 40 to 65 age segment.
On or about February 10, 2017, the Company filed with the SEC a registration statement on Form S-1 for the IPO, which was subsequently amended and declared effective on March 8, 2017 (the “Registration Statement”). On March 9, 2017, the Registration Statement was used to sell approximately 12.5 million shares of J.Jill common stock to the investing public at $13 per share.
According to the complaint, the Registration Statement communicated that the Company’s unique business strategy had insulated it from adverse industry trends and, as a result, J.Jill would be able to continue to grow its gross profits. The complaint asserts that the statements in the Registration Statement were false and misleading when made because the Company’s purportedly unique and superior sales and marketing approach had not insulated the Company from adverse trends affecting the overall retail industry. Moreover, the Company was carrying increasing amounts of slow moving inventory and would need to significantly markdown sale items and increase promotional efforts in an attempt to continue its sales growth, and the Company’s brick-and-mortar stores were experiencing difficulty attracting customers and maintaining profitability, which would result in the Company shuttering up to eight stores in fiscal 2017 – thereby diminishing the Company’s gross margins and impairing its ability to service its long-term debt. On October 12, 2017, J.Jill common stock closed at $4.86 per share, or more than 62% below its offering price only seven months after the IPO.
If you are a member of the class, you may, no later than December 12, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.