SKECHERS U.S.A., INC. NEW YORK, Sept. 25, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Skechers U.S.A., Inc. ("Skechers" or the "Company") (NYSE:SKX) of the November 5, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Skechers stock or options between October 20, 2017 and July 19, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/SKX. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Skechers common stock between October 20, 2017 and July 19, 2018 (the "Class Period"). The case, Laborers Local 235 Benefit Funds v. Skechers USA, Inc. et al, No. 1:18-cv-08039 was filed on September 4, 2018 and has been assigned to Judge Naomi Reice Buchwald.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that Skechers lacked the operational infrastructure to handle demand and sustain true sales growth in its international markets; (2) that Skechers was relying on expensive, third-party operational solutions to drive its sales growth; (3) that Skechers SG&A expenses would exceed sales growth for the foreseeable future; (4) that Skechers' international sales growth was not sustainable without the Company's heavy spending; and (5) that, as a result of the foregoing, the Company's statements about its business, operations, and prospects, were materially false and/or misleading.
Specifically, on April 18, 2018, the Company reported disappointing Q1 2018 financial results. The company revealed, among other things, that its SG&A expenses surged by 23.4% compared with sales growth of just 16.5%.
On this disclosure, Skechers' share price fell from $42.08 per share on April 19, 2018 to a closing price of $30.70 on April 20, 2018—a $11.38 or a 27.04% drop.
Then, on July 19, 2018, the Company reported disappointing Q2 2018 financial results. The Company, again, revealed that growth in SG&A expenses substantially outpaced that of its sales.
On this news, Skechers' share price fell from $33.25 per share on July 19, 2018 to a closing price of $26.27 on July 20, 2018—a $6.98 or a 20.99% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Skechers' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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SOURCE Faruqi & Faruqi, LLP
