Canada Goose Holdings Inc. Class Action Lawsuit
- Company Name
- Canada Goose Holdings Inc.
- Stock Symbol
- Class Period
- March 16, 2017 to August 1, 2019
- Motion Deadline
- November 2, 2019
- Southern District of New York
On September 3, 2019, the Canada Goose Holdings Inc. class action lawsuit was filed charging Canada Goose and certain of its officers with violations of the Securities Exchange Act of 1934. The Canada Goose class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of persons or entities that purchased or otherwise acquired Canada Goose securities between March 16, 2017 and August 1, 2019 (the “Class Period”) and is captioned Cheng v. Canada Goose Holdings Inc., No. 1:19-cv-08204.
Canada Goose designs, manufactures, and sells premium outdoor apparel, including parkas, jackets, shells, vests, knitwear, footwear, and accessories. Canada Goose uses, among other materials, animal down and furs for its winter jackets and other apparel. The Canada Goose class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Canada Goose’s business and operations. Specifically, defendants failed to disclose that Canada Goose sourced the down and fur used in its clothing products in an unethical and inhumane manner, which violated relevant U.S. Federal Trade Commission (“FTC”) regulations pertaining to false advertising with respect to its sourcing practices and, as a consequence, Canada Goose had been the subject of an FTC investigation regarding false advertising. As a result of this information being withheld from the market, Canada Goose securities traded at artificially inflated prices during the Class Period, with its stock reaching prices of more than $70 per share.
On November 2, 2017, People for the Ethical Treatment of Animals (“PETA”) issued a release alleging that Canada Goose suppliers used unethical measures to obtain the down and fur used in Canada Goose’s clothing and that PETA had lodged a complaint with the FTC regarding these practices because Canada Goose represented in communications and promotional materials that its clothing was produced with down and fur that was ethically and humanely sourced. Nevertheless, despite PETA’s release and FTC complaint, Canada Goose continued to represent that the down and fur used in producing its clothing was collected in a humane and ethical manner.
On June 17, 2019, the FTC issued a closing letter to Canada Goose’s legal counsel stating that it had investigated Canada Goose’s advertising practices for possible violations of the Federal Trade Commission Act due to “concern[s] that Canada Goose may have made false or misleading representations about the treatment of geese whose down is used in Canada Goose’s apparel.” The FTC further stated that it had not recommended enforcement action against Canada Goose because Canada Goose had “remov[ed] the advertising claims at issue from the marketplace and clarif[ied] its business practices in marketing materials.” However, the FTC expressly stated that “[t]his action is not to be construed as a determination that a violation of law did not occur” and “reserve[d] the right to take further action as the public interest may warrant.”
Then, on August 1, 2019, the New York Post published an article stating that Canada Goose had abandoned its claims of ethical treatment of animals used in making its winter jackets and clothing in response to the FTC’s regulatory review and had removed from its website previous claims that Canada Goose sourced coyote fur from animals in overpopulated areas, as well as videos purporting to show where Canada Goose obtained down for its parkas. On this news, Canada Goose’s stock price fell $2.21 per share, or nearly 5%, to close at $44.58 per share on August 1, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Canada Goose securities during the Class Period to seek appointment as lead plaintiff in the Canada Goose class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Canada Goose class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Canada Goose class action lawsuit. An investor’s ability to share in any potential future recovery of the Canada Goose class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Canada Goose class action lawsuit or have questions concerning your rights regarding the Canada Goose class action lawsuit, please provide your information here or contact counsel, Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Canada Goose class action lawsuit must be filed with the court no later than November 2, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.