RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased L Brands, Inc. (“L Brands” or the “Company”) (NYSE: LB) common stock between May 31, 2018 and November 19, 2018, inclusive (the “Class Period”).
L Brands shareholders may, no later than September 23, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of L Brands 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.
On November 19, 2018, the Company reduced its annual ordinary dividend from $2.40 to $1.20 to deleverage the balance sheet over time.
On this news, shares of L Brands fell $6.12 per share, or nearly 18%, to close at $28.43 per share on November 20, 2018, thereby injuring investors.
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: (1) that the Victoria’s Secret and PINK businesses were having a material adverse effect on the Company’s cash flow, liquidity and debt levels; (2) that Defendants lacked a reasonable basis for their positive statements about the ability of the Company to sustain its dividend; (3) that the MD&A disclosures in filings L Brands made with the SEC were materially false and misleading; (4) that the risk factor disclosures in filings L Brands made with the SEC were materially false and misleading; (5) that the representations about L Brands’ disclosure controls in filings the Company made with the SEC were materially false and misleading; (6) that the certifications issued by the Chief Executive Officer and the Chief Financial Officer on L Brands disclosure controls were materially false and misleading; and (7) that based on the foregoing, Defendants lacked a reasonable basis for their positive statements about L Brands’ then-current business operations and future financial prospects.
If you are a member of the class, you may, no later than September 23, 2019, 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.