Updated: July 30, 2018
Status: Ongoing Case
On September 15, 2016, Labaton Sucharow was appointed co-lead counsel in this securities fraud class action against Target Corporation (NYSE: TGT), and certain of its senior executives.
The lead plaintiff alleges that the defendants violated provisions of the Exchange Act by issuing false and misleading statements regarding Target’s launch of its operations in Canada. Specifically, the lead plaintiff alleges that the company concealed the extensive problems that it had been experiencing with its supply chain information technology (IT) systems within Canada. Whereas the company’s American operations had relied on well-developed IT systems, the company’s rush to expand into Canadian territories led to the deployment of untested and ineffective supply chain IT systems that were riddled with systemic problems. These systemic problems led to inventory backlogs, overburdened warehouses, empty store shelves, markdowns of excess inventory, materially negative financial results, and ultimately bankruptcy.
The lead plaintiff filed a consolidated amended class action complaint on November 14, 2016, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired the publicly traded common stock of Target between March 20, 2013 and August 4, 2014, inclusive (the class period). The defendants' motion to dismiss was granted by the court on July 31, 2017. The plaintiffs filed notice of appeal to the Eighth Circuit on April 18, 2018. The appeal has been fully briefed as of July 30, 2018. Oral argument has not yet been scheduled.
The case is In re Target Corporation Securities Litigation, No. 16-1315 (JNE/BRT) (D. Minn.). Labaton Sucharow represents Carpenters Pension Fund of Illinois. The defendants are Target Corporation, and three former executives, CEO and Chairman Gregg W. Steinhafel, CFO John J. Mulligan, and president of Target Canada Anthony S. Fisher.