Labaton Sucharow Files Securities Class Action Against TargetNEW YORK (May 17, 2016) – Labaton Sucharow announced today that the Firm filed a securities class action lawsuit on behalf of the Police Retirement System of St. Louis (St. Louis Police) against the defendants Target Corporation (Target) (NYSE:TGT) and certain of its senior executives in Police Retirement System of St. Louis v. Target Corporation, No. 16-cv-01315 (D. Minn.).
The plaintiffs allege that the defendants issued false and misleading statements regarding the company’s launch of its Canadian operations.
In January 2011, Target announced it would expand retail operations in Canada, with plans to open between 100 and 150 stores in the country during 2013 and 2014. During the class period (February 27, 2013 and May 19, 2014), the plaintiffs claim that the defendants repeatedly made positive statements concerning Target’s current and projected operations in Canada. Partly because of the supposed success Target was slated to achieve during fiscal year (FY) 2013 in its Canada segment, the defendants also provided shareholders with strong financial and operational guidance for FY 2013. As a result of these misrepresentations, Target stock traded at artificially inflated prices during the class period.
Unbeknownst to investors, Target’s Canadian expansion encountered operational problems from the start. On May 20, 2014, prior to the trading session, news reports circulated that Target had fired Tony Fisher, the company’s president of Canadian operations. Fisher’s departure confirmed that the string of weak results from Target’s Canadian operations preceding his termination were not simply growing pains associated with normal store openings, but rather due to significant undisclosed operational issues. Eventually, after the class period, Target revealed it would discontinue its Canadian operations, and Target Canada Co. had filed for bankruptcy protection in Canada. Each of these disclosures caused a material decline in the price of Target stock.
If you purchased or acquired publicly traded Target common stock during the class period, you are a member of the class and may be able to seek appointment as lead plaintiff. Lead plaintiff motion papers must be filed with the U.S. District Court for the District of Minnesota no later than July 18, 2016. A lead plaintiff is a court-appointed representative for absent members of the class. You do not need to seek appointment as lead plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow at (800) 321-0476, or via email at firstname.lastname@example.org. A copy of the complaint may be viewed online here.