The Children’s Place, Inc. Class Action Lawsuit - PLCE
Case Summary
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The Children’s Place class action lawsuit seeks to represent purchasers or acquirers of The Children’s Place, Inc. (NASDAQ: PLCE) securities between March 16, 2023 and February 8, 2024, inclusive (the “Class Period”). Captioned Khalsa v. The Children’s Place, Inc., No. 24-cv-01182 (D.N.J.), the Children’s Place class action lawsuit charges Children’s Place and certain of Children’s Place’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Children’s Place class action lawsuit, please provide your information in the form on this page. You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Children’s Place class action lawsuit must be filed with the court no later than April 29, 2024.
CASE ALLEGATIONS: Children’s Place is a specialty portfolio of children’s brands.
The Children’s Place class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Children’s Place was engaged in aggressive promotions; (ii) as a result, Children’s Place’s inventory values were overstated; and (iii) the above was reasonably likely to have an adverse impact on fiscal year 2023 financial results.
The Children’s Place class action lawsuit further alleges that on February 9, 2024, Children’s Place revealed that it now expected fourth quarter of 2023 net sales between $454 million and $456 million, falling short of previously issued guidance. The complaint further alleges that Children’s Place also disclosed that it would expect to incur an adjusted operating loss for the fourth quarter in range of (9.0%) to (8.0%) of net sales, which reflected the impact of “lower than expected merchandise margin resulting from more aggressive promotions in an effort to maximize sales, higher than anticipated split shipments to meet customer e-commerce demand, and increased inventory valuation adjustments.” On this news, the price of Children’s Place shares fell nearly 37%, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Children’s Place securities during the Class Period to seek appointment as lead plaintiff in the Children’s Place class action lawsuit. 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 Children’s Place class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Children’s Place class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Children’s Place 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 was ranked #1 on the ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller topped the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 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.