THE CHILDREN'S PLACE, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
The Children's Place
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired The Children’s Place, Inc. (“The Children’s Place” or the “Company”) (NASDAQ: PLCE) securities between March 16, 2023 and February 8, 2024, inclusive. The lawsuit seeks to recover The Children’s Place shareholders’ investment losses.
If you purchased securities in The Children’s Place between March 16, 2023 and February 8, 2024, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
According to the Complaint, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was engaged in aggressive promotions; (2) as a result, the Company’s inventory values were overstated; and (3) the foregoing was reasonably likely to have an adverse impact on fiscal 2023 financial results.
On February 9, 2024, before the market opened, The Children’s Place announced its preliminary fourth quarter fiscal year 2023 financial results. Therein, the Company revealed that it now expected fourth quarter net sales between $454 million and $456 million, falling short of previously issued guidance. The Company also disclosed that it would expect to incur an adjusted operating loss in the fourth quarter in range of (9.0%) to (8.0%) of net sales, which reflected the impact of “lower than expected merchandise margins resulting from more aggressive promotions in an effort to maximize sales, higher than anticipated split shipments to meet customer e-commerce demand, and increased inventory valuation adjustment.”
On this news, the Company’s stock price fell $7.24 or over 36%, to close at $12.51 per share on February 9, 2024.
If you wish to serve as lead plaintiff, you must move the Court no later than April 29, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
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Contact Information:
Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
