Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Kohl’s Corporation
July 25, 2013
Bernstein Liebhard LLP today announced that a securities class action has been commenced in the United States District Court for the Southern District of New York on behalf of all those who purchased shares of Kohl’s Corporation (NYSE: KSS) (“Kohl’s” or the “Company”) between February 26, 2009 and September 13, 2011, inclusive (the “Class Period”).
The complaint charges Kohl’s and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Kohl’s operates department stores across the United States that sell moderately priced apparel and home fashions that are targeted to middle-income consumers.
The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding the Company’s financial results. Specifically, defendants misrepresented and/or failed to disclose that: (i) the Company’s reported debt was materially understated; (ii) the Company’s reported equity was materially overstated; (iii) the Company’s leverage ratios, including its debt to equity ratio, were materially understated; (iv) the Company violated accounting standards associated with the accounting for and disclosure of leases; (v) the financial statements issued by the Company during the Class Period were not fairly presented in conformity with GAAP and were materially false and misleading; and (vi) the Company’s representations about its internal and disclosure controls and the certifications issued by defendants thereon were materially false and misleading.
On August 4, 2011, the Company announced that it had identified certain errors in its accounting for its leases and had “commenced a detailed review of its historical lease accounting with the goal of quantifying the impact of these errors for each affected reporting period.” In response to this announcement, the price of Kohl’s common stock declined nearly 8%, closing at $47.67 per share on August 4, 2011. On August 11, 2011, Kohl’s filed a Form 8-K with the SEC reporting that as a result of errors related to its accounting for leases, investors should no longer rely upon the financial statements included in the Company’s 2010 Form 10-K and first quarter 2011 Form 10-Q. Then, on September 8, 2011, Kohl’s filed a notification of late filing with the SEC on Form 12b-25 disclosing that the Company was unable to file its Form 10-Q for the quarter ended July 30, 2011, due to various errors in its accounting for both store and equipment leases. In response to this announcement, the price of Kohl’s common stock declined nearly 2.5%, closing at $43.87 per share on September 8, 2011.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Kohl’s shares during the Class Period. If you invested in Kohl’s shares as described above during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than September 23, 2013.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Kohl’s shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.