SAN DIEGO, Sept. 12, 2022 (GLOBE NEWSWIRE) — The class: Law firm for shareholder rights Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities that purchased or otherwise acquired Kohl’s Corporation KSS Securities between October 20, 2020 and May 19, 2022 for violations of the Securities Exchange Act of 1934. Kohl’s operates as a retail company in the United States
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What is it about in this case: Kohl’s Corporation (KSS) had inadequate disclosure controls and procedures that allowed the board to withhold material information from shareholders
According to the complaint, Kohl’s announced in October 2020 that it had entered into a new strategic framework (the “Strategic Plan”) to “drive sales growth,” “expand operating margin,” and “become the most trusted retailer of.” Choice for active, casual lifestyles.” In addition, Kohl’s said the company is “focused on increasing profitability with the goal of increasing its operating margin to 7% to 8%.” When announcing the strategic plan, the advertised Company for its reputedly strong customer base, industry-leading loyalty and loyalty card programs, high volume of deals, and large and growing digital business.
On May 19, 2022, Kohl’s reported disappointing results for the first quarter of fiscal 2022, which conflicted with Defendants’ statements regarding the successful execution of the Company’s strategic plan. Then, on May 20, 2022, Macellum Advisors GP, LLC, “a long-term holder of nearly 5% of Kohl’s outstanding stock,” issued a statement attributing the “hugely disappointing” financial results to a “flawed strategic plan and an inability to… Execution.” Macellum also stated that “the current board appears to have withheld from shareholders material information about the condition of Kohl’s in the run-up to this year’s pivotal annual meeting,” which “to us suggests a clear breach of fiduciary duty…
