Robbins Geller Obtains Class Certification in Urban Outfitters Securities Class Action
On February 29, 2016, the Honorable Mark A. Kearney of the Eastern District of Pennsylvania certified a class in a securities fraud class action against Urban Outfitters, Inc. (“Urban”) and several of its senior executive officers, including the CEO and CFO. The case alleges that during the class period (March 12, 2013-September 9, 2013), defendants engaged in a fraudulent scheme to artificially inflate the stock price by misrepresenting and concealing information related to failed product assortments and the resulting deceleration in sales growth during the first half of fiscal year 2014, leading up to and including Urban’s back-to-school season. The court considered and rejected defendants’ claims in regards to the predominance inquiry under Rule 23(b)(3) and certified the class pursuant to Rule 23(b)(3), noting that “Lead Plaintiff is an adequate representative who . . . will fairly and adequately protect the Class’ interests.”
In re Urban Outfitters, Inc. Sec. Litig., No. 2:13-cv-05978 (E.D. Pa.).