Labaton Sucharow has been appointed lead counsel in a securities class action against Qurate Retail, the parent company of retail brands QVC, HSN, zulily, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road, and certain of its officers and directors. Partners Jonathan Gardner and Christine Fox will lead the Firm’s litigation team.
The action alleges that Qurate made materially false and/or misleading statements attributing QVC’s revenue growth to broad-based marketing and a higher personalized customer experience. Qurate failed to disclose that it was aggressively loosening credit standards of its Easy-Pay program, which allows for QVC customers to pay for certain merchandise in monthly installments, to attract new customers, and that this new customer base posed a high write-off risk.
In August 2016, the company disclosed “higher than expected write-offs on Easy Pay purchases” and announced increased reserves for prior period purchases. Upon this news, Qurate’s stock fell more than 21 percent.
The case is Bristol County Retirement System v. Qurate Retail, Inc., No. 18-cv-02300 (D. Colo.). Labaton Sucharow represents lead plaintiff Indiana Public Retirement System.