Menomonee Falls, Wis. – Law firm Levi & Korsinsky has commenced a class-action lawsuit against Kohl’s Corporation in the United States District Court for the Southern District of New York. The suit has been filed on behalf of investors who purchased Kohl's commons stock during the period between February 26, 2009 and September 13, 2011.
On August 4, 2011, Kohl’s announced that certain errors were discovered in its accounting for its leases. Following this statement, the price of Kohl's common stock declined nearly 8%. The company filed a Form 8-K reporting that, as a result of these accounting errors, the financial statements included in 2010 Form 10-K and first quarter 2011 Form 10-Q could no longer be relied upon. On this news, Kohl's stock dropped another 2.5% on September 8, 2011.
The suit alleges that in the course of these events, Kohl’s understated its debt and leverage ratios, overstated its reported equity, issued false and misleading financial statements and violated accounting standards. Shareholders of Kohl's have until September 23, 2013 to seek appointment as lead plaintiff.