NEW YORK (Legal Newsline) – A footwear company is alleged to have artificially inflated the price of its common stock.
Laborers Local 234 Benefit Funds, individually and on behalf of all others similarly situated, filed a complaint on Sept. 4 in the U.S. District Court for the Southern District of New York against Skechers USA Inc., Robert Greenberg, John Vandemore and David Weinberg over alleged violation of the Section 10(b) of the Securities Exchange Act.
According to the complaint, between Oct. 20, 2017, and July 19, 2018, "in an effort to artificially inflate the price of Sketchers' stock for the personal gain of the company's founding family, defendants allegedly continued to tout Sketchers' strong sales growth while falsely assuring plaintiff and the class of investors that the company was 'focus[ed] on ... bringing ... expenses in line with expected sales.'”
"However, in reality, defendants knew that the company did not have the operational infrastructure to meet the demand for its products in China and other international markets," the suit states.
The suit states Skechers stock price declined $11.38 per share in April when the company's first-quarter financial results were released. The plaintiff alleges it and the class members have "suffered significant losses and damages."
The plaintiff holds Skechers USA Inc., Greenberg, Vandemore and Weinberg responsible because the defendants allegedly deceived the investing public and caused them to buy stock at artificially inflated and/or maintained prices.
The plaintiff requests a trial by jury and seeks award of damages, pre- and post-judgment interest, attorneys' and expert witness fees, other costs, and such other relief as the court deems appropriate. It is represented by Steven B. Singer and Rhonda Cavagnaro of Saxena White PA in White Plains, New York.
U.S. District Court for the Southern District of New York case number 1:18-cv-08039-NRB