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Kohl’s Corporation Class Action Lawsuit - KSS

28 days left to seek lead plaintiff status

Case Summary

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The Kohl’s class action lawsuit seeks to represent purchasers or acquirers of Kohl’s Corporation (NYSE: KSS) securities between October 20, 2020 and May 19, 2022, inclusive (the “Class Period”).  The Kohl’s class action lawsuit – captioned Shanaphy v. Kohl’s Corporation, No. 22-cv-01016 (E.D. Wis.) – charges Kohl’s as well as certain of its top executives and directors with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Kohl’s class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Kohl’s class action lawsuit must be filed with the court no later than November 1, 2022.

CASE ALLEGATIONS: In October 2020, Kohl’s announced that it had entered into a new strategic framework to “drive top-line growth,” “expand operating margin,” and become “the most trusted retailer of choice for the active and casual lifestyle” (the “Strategic Plan”).  In announcing the Strategic Plan, Kohl’s touted its purportedly strong foundation of customers, industry-leading loyalty and charge card programs, high volume of stores, and large and growing digital business.

The Kohl’s class action lawsuit alleges that defendants failed to disclose that: (i) Kohl’s Strategic Plan was not well tailored to achieving Kohl’s stated goals; (ii) the defendants had likewise overstated Kohl’s success in executing its Strategic Plan; (iii) Kohl’s had deficient disclosure controls and procedures, internal control over financial reporting, and corporate governance mechanisms; (iv) as a result, Kohl’s Board of Directors was able to and did withhold material information from shareholders about the state of Kohl’s in the lead-up to Kohl’s annual meeting; and (v) all the foregoing, once revealed, was likely to have a material negative impact on Kohl’s financial condition and reputation.

On May 19, 2022, Kohl’s announced its first quarter of 2022 results, reporting, among other items, a net sales figure expected to grow up to only 1% (compared to Wall Street consensus growth of 1.94%), earnings per share of $0.11 (missing estimates by $0.59), a revenue figure which only barely edged expectations, and Kohl’s decision to cut its full year earnings forecast.  These results were at odds with defendants’ representations regarding the successful execution of Kohl’s Strategic Plan, which was purportedly poised to drive top-line growth and position Kohl’s for long-term success.

Then, on May 20, 2022, Macellum Advisors GP, LLC, “a long-term holder of nearly 5% of the outstanding common shares of Kohl’s,” issued a statement addressing “[t]his quarter’s extremely disappointing results,” which Macellum attributed to a “flawed strategic plan and an inability to execute.”  Macellum also stated that “the current Board appears to have withheld material information from shareholders about the state of Kohl’s in the lead-up to this year’s pivotal annual meeting,” which “suggests to us a clear breach of fiduciary duty.”  On this news, Kohl’s stock price fell by nearly 13%, damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Kohl’s securities during the Class Period to seek appointment as lead plaintiff.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Kohl’s class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Kohl’s class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Kohl’s class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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