Kohl’s hit with class-action suit
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.
PriceSmart sales skyrocket in July
San Diego – PriceSmart reported substantial increases in both net warehouse club sales and same-store warehouse club sales during July of this year as compared to July of last year. For the month of July 2013, net warehouse club sales increased 11.9% to $188.5 million, from $168.5 million in July a year earlier. There were 31 warehouse clubs in operation at the end of July 2013 and 29 warehouse clubs in operation at the end of July 2012.
For the four weeks ended July 28, 2013, comparable warehouse sales for the 29 warehouse clubs open at least 13 1/2 full months increased 8.9%, compared to the same four-week period last year.
Office Depot sends shareholder letter supporting director nominees
Boca Raton, Fla. – Office Depot sent its shareholders a letter this morning urging them to vote for its 10 nominees for the board of directors at its annual shareholders meeting on Aug. 21. The letter says that nominees from activist investor Starboard Value LP could disrupt progress and momentum in the ongoing OfficeMax merger and also prevent future synergies from the merger as well as make excessive cuts in critical business functions.
Officer Depot sent a similar letter to its shareholders on July 29.