NEW YORK, Sept. 05, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Canada Goose Holdings, Inc. (“Canada Goose” or the “Company”) (NYSE: GOOS) of the November 4, 2019 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 Canada Goose stock or options between March 16, 2017 and August 1, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/GOOS. 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 Canada Goose securities between March 16, 2017 and August 1, 2019 (the “Class Period”). The case, Cheng v. Canada Goose Holdings, Inc., No. 19-cv-08204 was filed on September 3, 2019 and has been assigned to Judge Vernon S. Broderick.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Canada Goose sourced the down and fur used in its clothing products in a way that treated animals in an unethical and inhumane manner; (2) Canada Goose was thus non-compliant with relevant Federal Trade Commission (“FTC”) regulations pertaining to false advertising with respect to its sourcing practices; (3) accordingly, Canada Goose was the subject of an ongoing FTC investigation regarding false advertising; and (4) consequently, the Company’s public statements were materially false and misleading at all relevant times.
Specifically, on November 2, 2017, the non-profit organization People for the Ethical Treatment of Animals (“PETA”) issued a press release alleging that Canada Goose suppliers used unethical measures to obtain the down and fur used in creating the Company’s clothing merchandise (the “PETA Press Release”). The PETA Press Release also stated that PETA had issued a complaint to the FTC regarding these practices because the Company represented in communications and promotional materials that its clothing was produced with down and fur from sources that treated the animals used in sourcing those materials ethically and humanely.
After the announcement, Canada Goose’s share price fell from $21.42 per share on November 1, 2017 to a closing price of $20.72 on November 2, 2017—a $0.70 or a 3.27% drop.
Then, on June 17, 2019, the United States FTC issued a closing letter to Canada Goose’s legal counsel. The FTC Closing Letter stated that the FTC had investigated Canada Goose’s advertising practices for possible violations of the Federal Trade Commission Act (“FTC Act”), citing “concern[s] that Canada Goose may have made false or misleading representations about the treatment of geese whose down is used in Canada Goose’s apparel.” The FTC further stated that it had not recommended enforcement action against Canada Goose because the Company had “removed the advertising claims at issue from the marketplace and clarified its business practices in marketing materials.” However, the FTC expressly stated that “this action is not to be construed as a determination that a violation of law did not occur” and “reserved the right to take further action as the public interest may warrant,”
After the announcement, Canada Goose’s share price fell from $36.67 per share on June 14, 2019 to a closing price of $36.17 on June 17, 2019—a $0.50 or a 1.36% drop.
Finally, on August 1, 2019, the New York Post published an article entitled “Canada Goose pulls claims about its ‘ethical’ treatment of animals.” According to the New York Post Article, Canada Goose had abandoned its claims of ethical treatment of animals used in making its winter jackets and clothing in response to the FTC’s regulatory review. The New York Post article also reported that Canada Goose had removed from its website previous claims that the Company sourced coyote fur from animals in overpopulated areas, as well as videos purporting to show where Canada Goose obtained down for its parkas. The New York Post article also reported PETA’s assertion that its complaint to the FTC in 2017 had precipitated the FTC’s investigation into Canada Goose for potential violations of the FTC Act.
After the announcement, Canada Goose’s share price fell from $46.79 per share July 31, 2019 to a closing price of $44.58 on August 1, 2019—a $2.21 or a 4.70% 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 Canada Goose’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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