Ulta Beauty, Inc.
- Company Name
- Ulta Beauty, Inc.
- Stock Symbol
- Class Period
- March 30, 2016 to February 23, 2018
- Motion Deadline
- May 1, 2018
- Northern District of Illinois
The complaint charges Ulta and certain of its officers with violations of the Securities Exchange Act of 1934. Ulta operates a chain of beauty stores that offer cosmetics, fragrance, skin and hair care products, and salon services throughout the United States.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or withheld adverse information from investors regarding the Company’s business and operations, including that the Company was engaged in the widespread practice of repackaging returned cosmetics and re-shelving them alongside unblemished products to sell at full retail price. As a result of this information being withheld from the market, the price of Ulta shares was artificially inflated during the Class Period, with Ulta’s stock price reaching a high of $313.73 per share.
On February 9, 2018, media outlets reported that a consumer class action lawsuit had been filed against Ulta alleging that the Company was engaged in the “widespread and surreptitious” practice of repackaging returned cosmetics and re-shelving them alongside unblemished products to sell at full price. According to the lawsuit, “dozens of other current and former Ulta employees from retail locations all over the country confirmed that substantially similar practices also occurred at the Ulta stores where they worked.” On this news, Ulta’s share price fell $9.07 per share, or more than 4%, to close at $209.48 per share on February 12, 2018.
Then on February 23, 2018, CBS News published a story on its website, entitled “Former Ulta Beauty employee says she felt pressured to resell used products,” reporting on statements initially made on Twitter by at least one former Ulta employee to the effect that Ulta store managers frequently pressured the Company’s employees to clean and resell used products. On this news, Ulta’s share price fell another $8.18 per share, or nearly 4%, to close at $198.93 per share on February 26, 2018.