Capri Holdings Limited (NYSE: CPRI): Capri Holdings Limited (“Capri”), Tapestry, Inc. (“Tapestry”), and certain of Capri and Tapestry’s senior executives have been sued for violations of the federal securities laws.  The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Capri stock or sold Capri puts.  The case is pending in the U.S. District Court for the District of Delaware and is captioned Hurwitz v. Capri Holdings Limited, et al., No. 24-cv-1410.
 
If you incurred losses on your investments in Capri, you are encouraged to submit your information.
 
Why was Capri Sued for Securities Fraud?
 
Capri is a fashion firm that owns several fashion brands, such as Michael Kors.  Tapestry is also a fashion firm, and it owns fashion brands including Coach and Kate Spade.  On August 10, 2023, Capri and Tapestry jointly announced that Tapestry would purchase Capri for $57 per share in cash. 
 
During the relevant period, Capri and Tapestry stated that the acquisition would not stifle competition, and that they expected to obtain antitrust approval for the acquisition and for the deal to close in 2024.
 
On April 22, 2024, the FTC brought an action to enjoin the acquisition given its anticompetitive effects.  Capri and Tapestry, however, strongly disputed the FTC’s allegations and insisted that the acquisition would be “pro-consumer” and have no negative effects on competition.
 
The Stock Declines as the Truth is Revealed
 
On October 24, 2024, the court granted the FTC’s motion for preliminary injunction and blocked the Capri acquisition.  In its order, the court cited to hundreds of pages of internal documents revealing that defendants secretly understood that their brands were close competitors within a well-defined “accessible luxury handbag market” and that the Capri acquisition would decrease competition.  According to the court, defendants’ statements to the investing public did not fit with the “commercial realities” to which defendants themselves were keenly attuned.  On this news, the price of Capri stock fell nearly 50%, from a closing price of $41.60 per share on October 24, 2024 to $21.26 per share on October 25, 2024.

What are my Rights?
 
If you invested in Capri securities, you may ask the Court no later than February 21, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice.  To be a member of the Class, you need not take any action at this time.  The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff. 

If you incurred losses on your investments in Capri, you are encouraged to submit your information to speak with an attorney about your rights.  

You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619

All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
 
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