INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Kohl’s Corporation (NYSE: KSS) Shareholders
NEWTOWN, PA, September 12, 2022) — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of purchasers of Kohl’s Corporation (“Kohl’s” or the “Company”) (NYSE: KSS) common stock between October 20, 2020, and May 19, 2022, inclusive (the “Class Period”).
Investors who purchased Kohl’s Corporation common stock during the Class Period may move the U.S. District Court for the Eastern District of Wisconsin to appoint them as lead plaintiff, no later than November 1, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected].
Background on the Kohl’s Securities Class Action
Kohl’s is an department store chain operated by the Company, which offers apparel, footwear, accessories, beauty, and home products both online and in stores. As of December 2021, Kohl’s is the largest department store chain in the U.S. with stores in every state except Hawaii.
In October 2020, Kohl’s announced that it had entered into a new strategic framework. This “Strategic Plan” was implemented to “drive top-line growth”, “expand operating margin”, and become “the most trusted retailer of choice for the active and casual lifestyle”. However, the “Strategic Plan” was poorly equipped to achieve these goals.
The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements related to the Company’s business, operations, and compliance policies, specifically that Defendants made false and/or misleading statements and/or material omissions that: (i) Kohl’s Strategic Plan was not well tailored to achieving the Company’s stated goals; (ii) the Defendants overstated the Company’s success in executing its Strategic Plan; (iii) Kohl’s had deficient disclosure controls, internal controls over financial reporting, and corporate governance; (iv) as a result, Kohl’s Board was able to withhold material information from shareholders about the state of the Company in it in the lead-up to the annual meeting; (v) the foregoing issues would likely have a material negative impact on Kohl’s financial condition and reputation; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 19, 2022, Kohl’s issued a press release announcing the Company’s financial results for the first quarter of 2022, reporting that net sales were expected to grow only 1% (compared to Wall Street consensus growth of 1.94%), and earnings per share of $0.11 (missing estimates by $0.59). These results did not coincide with Kohl’s representation regarding the successful execution of the “Strategic Plan”, which was supposed to position the Company for long-term success and drive top-line growth.
Then, on May 20, 2022, Macellum Advisors GP, LLC, “a long-term holder of nearly 5% of the outstanding common shares of Kohl’s” issued a statement addressing the quarter’s disappointing results and blaming the Company’s inability to execute on its “Strategic Plan”. On this news, the price of Kohl shares plummeted $5.84 per share, or 12.97% in a single day, to close at $39.20 per share on May 20, 2022.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 844-696-7492 ext. 1
Email: [email protected]
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.