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Entwistle & Cappucci has filed a securities class action lawsuit against Capri Holdings and Tapestry Inc. in the U.S. District Court for the District of Delaware. The lawsuit represents investors who traded Capri stock between August 10, 2023, and October 24, 2024.
The complaint alleges that defendants made false or misleading statements regarding the proposed $8.5 billion acquisition of Capri by Tapestry and downplayed antitrust risks. On October 24, 2024, Judge Jennifer L. Rochon granted the FTC’s motion to block the merger, finding evidence that the companies were direct competitors in the accessible luxury handbag market, contrary to their public statements.
Following this news, Capri’s stock price dropped $20.34 per share, representing nearly a 50% decline. The deadline for affected investors to file a motion to serve as lead plaintiff is February 21, 2025.
Entwistle & Cappucci ha presentato una causa collettiva di azioni in materia di titoli contro Capri Holdings e Tapestry Inc. presso il Tribunale Distrettuale degli Stati Uniti per il Distretto del Delaware. La causa rappresenta gli investitori che hanno scambiato azioni di Capri tra il 10 agosto 2023 e il 24 ottobre 2024.
Il reclamo accusa i convenuti di aver fatto dichiarazioni false o fuorvianti riguardo alla proposta di acquisizione da 8,5 miliardi di dollari di Capri da parte di Tapestry, minimizzando i rischi antitrust. Il 24 ottobre 2024, il giudice Jennifer L. Rochon ha accolto la richiesta della FTC di bloccare la fusione, trovando prove che le aziende erano concorrenti diretti nel mercato delle borse di lusso accessibili, in contrasto con le loro dichiarazioni pubbliche.
Dopo questa notizia, il prezzo delle azioni di Capri è sceso di 20,34 dollari per azione, rappresentando quasi una diminuzione del 50%. La scadenza per gli investitori interessati per presentare una mozione per diventare il capogruppo è il 21 febbraio 2025.
Entwistle & Cappucci ha presentado una demanda colectiva de valores contra Capri Holdings y Tapestry Inc. en el Tribunal de Distrito de EE. UU. para el Distrito de Delaware. La demanda representa a los inversores que compraron acciones de Capri entre el 10 de agosto de 2023 y el 24 de octubre de 2024.
La demanda alega que los demandados hicieron declaraciones falsas o engañosas sobre la propuesta de adquisición de 8.5 mil millones de dólares de Capri por parte de Tapestry y minimizó los riesgos antimonopolio. El 24 de octubre de 2024, la jueza Jennifer L. Rochon aprobó la moción de la FTC para bloquear la fusión, encontrando evidencia de que las empresas eran competidores directos en el mercado de bolsos de lujo accesibles, en contra de sus declaraciones públicas.
Tras esta noticia, el precio de las acciones de Capri cayó $20.34 por acción, lo que representa casi un 50% de disminución. La fecha límite para que los inversores afectados presenten una moción para actuar como demandante principal es el 21 de febrero de 2025.
Entwistle & Cappucci는 Capri Holdings와 Tapestry Inc.를 상대로 델라웨어 지방법원에 증권 집단 소송을 제기했습니다. 이 소송은 2023년 8월 10일부터 2024년 10월 24일 사이에 Capri 주식을 거래한 투자자를 대표합니다.
고소장에서는 피고들이 Tapestry에 의한 Capri의 85억 달러 인수 제안에 대해 허위 또는 오해의 소지가 있는 진술을 했고, 반독점 위험을 경시했다고 주장합니다. 2024년 10월 24일, 제니퍼 L. 로찬 판사는 FTC의 합병 차단 요청을 승인하며, 두 회사가 대중의 성명과는 반대로 접근 가능한 고급 핸드백 시장에서 직접적인 경쟁자임을 나타내는 증거를 발견했습니다.
이 소식 이후, Capri 주가는 주당 20.34달러 하락했으며, 이는 거의 50%의 감소에 해당합니다. 영향을 받은 투자자들이 원고로서의 역할을 하기 위해 소송을 제기해야 하는 마감일은 2025년 2월 21일입니다.
Entwistle & Cappucci a déposé une action collective en valeurs mobilières contre Capri Holdings et Tapestry Inc. devant le tribunal de district des États-Unis pour le district du Delaware. L’action représente les investisseurs qui ont échangé des actions de Capri entre le 10 août 2023 et le 24 octobre 2024.
La plainte allègue que les défendeurs ont fait des déclarations fausses ou trompeuses concernant la proposition d’acquisition de 8,5 milliards de dollars de Capri par Tapestry, en minimisant les risques antitrust. Le 24 octobre 2024, la juge Jennifer L. Rochon a accordé la demande de la FTC de bloquer la fusion, trouvant des preuves que les entreprises étaient des concurrentes directes sur le marché des sacs à main de luxe accessibles, contrairement à leurs déclarations publiques.
Suite à cette nouvelle, le prix de l’action de Capri a chuté de 20,34 dollars par action, représentant presque une baisse de 50%. La date limite pour les investisseurs concernés pour déposer une motion afin d’agir en tant que plaignant principal est le 21 février 2025.
Entwistle & Cappucci hat eine Sammelklage wegen Wertpapieren gegen Capri Holdings und Tapestry Inc. beim US-Bezirksgericht für den Bundesstaat Delaware eingereicht. Die Klage vertritt Investoren, die zwischen dem 10. August 2023 und dem 24. Oktober 2024 Aktien von Capri gehandelt haben.
Die Klage behauptet, die Angeklagten hätten falsche oder irreführende Aussagen bezüglich der vorgeschlagenen Übernahme von Capri durch Tapestry im Wert von 8,5 Milliarden Dollar gemacht und die Antitrust-Risiken heruntergespielt. Am 24. Oktober 2024 genehmigte Richterin Jennifer L. Rochon den Antrag der FTC, die Fusion zu blockieren, und fand Beweise dafür, dass die Unternehmen direkte Konkurrenten im Markt für erschwingliche Luxus-Handtaschen waren, was ihren öffentlichen Erklärungen widersprach.
Nach dieser Nachricht fiel der Aktienkurs von Capri um 20,34 Dollar pro Aktie, was einem Rückgang von fast 50% entspricht. Die Frist für betroffene Investoren, um einen Antrag als Hauptkläger einzureichen, endet am 21. Februar 2025.
Negative
- FTC successfully blocked the $8.5B Tapestry acquisition of Capri
- Stock price dropped $20.34 (nearly 50%) on merger block news
- Company faces class action lawsuit for allegedly misleading investors about merger antitrust risks
Insights
The securities class action against Capri Holdings and Tapestry represents a serious legal and financial challenge that could significantly impact shareholders and the luxury retail sector. The complaint, filed in Delaware District Court, centers on alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act, focusing on material misrepresentations about antitrust risks in the proposed $8.5 billion merger.
The case’s strength lies in Judge Rochon’s ruling, which provided substantial evidence that the companies internally acknowledged their direct competition in the accessible luxury handbag market – contrary to their public statements. This discrepancy between internal assessments and public disclosures creates significant liability exposure under securities laws.
The preliminary injunction’s impact was immediate and severe, triggering a 50% stock price decline, indicating the market had not properly priced in the antitrust risk. This dramatic correction suggests potential damages could be substantial, as the class period spans from August 2023 to October 2024.
Looking ahead, several key factors will influence the litigation’s trajectory:
- The February 21, 2025 lead plaintiff deadline will likely attract institutional investors given the significant losses
- The case’s merit is strengthened by the court’s finding of “compelling evidence” regarding competitive overlap
- Similar securities cases typically take 2-3 years to resolve, often through settlements ranging from $10 million to $100 million, depending on damages
The failed merger and subsequent litigation create ongoing uncertainty for both companies’ strategic directions, particularly in the competitive luxury retail space. This case also serves as a cautionary tale about adequate disclosure of antitrust risks in merger communications, which could influence how future retail sector consolidation is approached and communicated to investors.
NEW YORK–(BUSINESS WIRE)– Entwistle & Cappucci LLP (“Entwistle & Cappucci”) today announced it has filed a class action complaint in the United States District Court for the District of Delaware (the “Court”) against Capri Holdings Limited (“Capri”), Tapestry Inc. (“Tapestry”) and certain Capri and Tapestry senior officers and directors (collectively, “Defendants”) on behalf of a class (“Class”) consisting of all persons who purchased Capri common stock or sold Capri puts between August 10, 2023 and October 24, 2024, both dates inclusive (collectively, “Class Members”).
The case, captioned FNY Partners Fund LP v. Capri Holdings Limited, et al., No. 25-cv-116 (D. Del.) (the “Action”), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Capri owns several consumer brands such as Michael Kors, which manufactures and sells handbags, among other things. Tapestry similarly owns brands such as Coach and Kate Spade. Like Michael Kors, Coach and Kate Spade manufacture and sell, among other things, handbags.
The complaint alleges Defendants repeatedly issued or caused to be issued materially false or misleading statements or omitted material facts concerning the proposed $8.5 billion acquisition of Capri by Tapestry, and the inherent risk of regulatory scrutiny of the merger based on violations of federal antitrust laws.
On October 24, 2024, Judge Jennifer L. Rochon of the U.S. District Court for the Southern District of New York granted the U.S. Federal Trade Commission’s motion to preliminarily enjoin the acquisition of Capri by Tapestry. In her ruling, Judge Rochon concluded that a “substantial body of compelling evidence” demonstrated that, in contrast to their public statements, Defendants internally believed their brands were direct competitors in a well-defined “accessible luxury handbag market.” Judge Rochon ruled the merger would eliminate fierce head-to-head competition between Capri and Tapestry – two of the largest U.S. handbag makers – and create a massive company that could unfairly raise prices. On this news, the price of Capri stock dropped $20.34 per share – a decline of nearly 50% of the stock’s opening value on October 24, 2024.
If you are a member of the Class and were damaged by the conduct alleged in this Action, you may be able to seek appointment as lead plaintiff. The lead plaintiff is a Court-appointed representative for absent members of the Class. Any member of the proposed Class may move the Court to serve as a lead plaintiff through counsel of their choice, or they may choose to do nothing and remain a member of the Class. If you are a Class Member and there is a recovery for the Class, you can share in that recovery without seeking appointment as a lead plaintiff, but as an absent Class Member. If you wish to serve as a lead plaintiff in this matter, you must file a motion with the Court no later than February 21, 2025.
In the interim, if you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact: Robert N. Cappucci, Esq. or Jonathan H. Beemer, Esq. of Entwistle & Cappucci at (212) 894-7200, or via e-mail at rcappucci@entwistle-law.com or jbeemer@entwistle-law.com.
About Entwistle & Cappucci
Entwistle & Cappucci is a national law firm providing exceptional legal representation to clients in the most complex and challenging legal matters. Our practice encompasses all areas of litigation, corporate transactions, bankruptcy, insurance, corporate investigations and white-collar defense. Our clients include public and private corporations, major hedge funds, public pension funds, governmental entities, leading institutional investors, domestic and foreign financial services companies, emerging business enterprises and individual entrepreneurs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250129565931/en/
Entwistle & Cappucci LLP
Robert N. Cappucci, Esq. (rcappucci@entwistle-law.com)
Jonathan H. Beemer, Esq. (jbeemer@entwistle-law.com)
230 Park Avenue, 3rd Floor
New York, NY 10169
Telephone: (212) 894-7200
Source: Entwistle & Cappucci LLP
FAQ
What caused CPRI stock to drop 50% on October 24, 2024?
CPRI stock dropped after a federal judge granted the FTC’s motion to block Tapestry’s $8.5 billion acquisition of Capri Holdings, citing antitrust concerns in the luxury handbag market.
Why did the FTC block the Tapestry-CPRI merger?
The FTC successfully argued that the merger would eliminate competition between two of the largest U.S. handbag makers and create a company that could unfairly raise prices in the accessible luxury handbag market.
What is the deadline to join the CPRI class action lawsuit?
Investors have until February 21, 2025, to file a motion with the Court to serve as lead plaintiff in the class action lawsuit against Capri Holdings.
Who is eligible for the CPRI class action lawsuit?
Investors who purchased Capri common stock or sold Capri puts between August 10, 2023, and October 24, 2024, are eligible to join the class action lawsuit.
How much was the proposed Tapestry acquisition of CPRI worth?
The proposed acquisition of Capri Holdings by Tapestry was valued at $8.5 billion before being blocked by the FTC.
