The Gap, Inc. Class Action Lawsuit - GPS

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Case Summary

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The Gap class action lawsuit seeks to represent purchasers or acquirers of The Gap, Inc. (NYSE: GPS) publicly traded securities between November 24, 2021 and July 11, 2022, inclusive (the “Class Period”).  Captioned Diaz v. The Gap, Inc., No. 22-cv-07371 (E.D.N.Y.), the Gap class action lawsuit charges Gap and certain of its 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 Gap 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 Gap class action lawsuit must be filed with the court no later than February 3, 2023.

CASE ALLEGATIONS: Gap is a multinational retail apparel company, offering apparel, accessories, and personal care products under the Old Navy, Gap, Banana Republic, and Athleta brands.  In 2021, Old Navy introduced BODEQUALITY, a size-inclusivity campaign which included clothing offerings up to a size 28. 

The Gap class action lawsuit alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) there were execution missteps in size and assortment at Old Navy related to BODEQUALITY which were adversely impacting Old Navy’s margins and financial results; (ii) contrary to Gap’s statements, there were inventory risks relating to BODEQUALITY that were adversely affecting Gap’s operations; and (iii) Gap’s statements during the Class Period about historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results trajectory of Gap, and were materially false and misleading, and lacked a factual basis. 

On April 21, 2022, Gap announced that Nancy Green, CEO of Old Navy, had stepped down.  On this news, the price of Gap stock fell nearly 18%.

Then, on May 20, 2022, The Wall Street Journal published an article revealing that Gap had improperly managed its inventory of plus size clothing at its Old Navy stores, causing material declines in margins and business results.  On this news, the price of Gap stock fell approximately 7% over the next two trading sessions. 

Thereafter, on May 27, 2022, Gap admitted that execution missteps in size and assortment of inventory at Old Navy adversely impacted Gap’s financial results.  On this news, the price of Gap stock fell nearly 5%.

Finally, on July 11, 2022, Gap announced that its President and CEO, defendant Sonia Syngal, was stepping down from her position as President and CEO of Gap and had resigned from the Board of Directors.  On this news, the price of Gap stock fell an additional 5%, further damaging investors. 

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Gap publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Gap 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 Gap class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Gap class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Gap 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 most recent ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors in 2021 – 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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