NEW YORK, Aug. 26, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire is investigating certain officers and directors of Ascena Retail Group, Inc. (ASNA), A.O. Smith Corporation (AOS), and Grubhub, Inc. (GRUB) on behalf of long-term stockholders. More information about each potential case can be found at the link provided.
Ascena Retail Group, Inc. (ASNA)
Bragar Eagel and Squire is investigating certain officers and directors of Ascena Retail Group, Inc. following a class action complaint that was filed against Ascena on June 7, 2019.
In August 2015, Ascena completed the acquisition of Ann Inc. (“Ann”), the parent company of Ann Taylor and LOFT (the “Ann Acquisition”).
The complaint alleges that during the Class Period, defendants made materially misleading statements and/or failed to disclose adverse information regarding Ascena’s business and operations. Specifically, the complaint alleges that defendants failed to disclose that the Ann Acquisition was a complete disaster for the Company as Ann’s operations were in far worse condition than had been represented to the public; that, in order to mask the true condition of Ann, defendants improperly delayed recognizing an impairment charge to the value of Ann’s goodwill and, as a result, Ascena’s reported income and assets were materially overstated and the Company’s financial results were not prepared in conformity with Generally Accepted Accounting Principles (“GAAP”); and that many of the brands acquired in the Ann Acquisition were in steep decline and were also materially overvalued on Ascena’s Class Period financial statements. As a result of this information being withheld from the market, the price of Ascena common stock was artificially inflated to more than $14 per share during the Class Period.
To learn more about our investigation into Ascena go to: http://bespc.com/asna-2
A.O. Smith Corporation (AOS)
Bragar Eagel and Squire is investigating certain officers and directors of A.O. Smith Corporation following a class action complaint that was filed against A.O. Smith on August 19, 2019.
According to the complaint, defendants misled investors by concealing A.O. Smith's use of a distribution partner (Jiangsu UTP Supply Chain, or "UTP") to (1) artificially inflate the company's sales and gross margins in the Chinese market, and (2) mask its actual China revenue and earnings slowdown through distributor-financed channel stuffing.
On April 30, 2019, A.O. Smith disclosed disappointing financial results for its China operations, and quarterly earnings for the segment fell more than 65% year-over-year.
Then, on May 16, 2019, J Capital Research USA LLC issued a report on the Company's China operations and undisclosed UTP relationship. The report estimated that "UTP may be responsible for as much as 75% of AOS China sales."
On this news, the price of A.O. Smith shares sharply declined, to close at $45.12.
To learn more about our investigation into A.O. Smith go to: http://bespc.com/aos
Grubhub, Inc. (GRUB)
Bragar Eagel and Squire is investigating certain officers and directors of Grubhub, Inc. following a report that was published on Grubhub on July 15, 2019.
On July 15, 2019, The New Food Economy reported that Grubhub registered more than 20,000 web domains, many matching the names of its restaurant customers. Grubhub claimed it obtained explicit permission from the restaurants to purchase domains in their names; however, many of these restaurant owners commented that they were unaware they had granted permission for the creation of these sites. Another complaint against the company alleges Grubhub charges erroneous fees to restaurants from phone orders generated through websites it operates. The Small Business Association is investigating these complaints and New York Senator Chuck Schumer recently demanded that Grubhub change its practices or he would seek the aid of the Federal Trade Commission.
For more information on our investigation into Grubhub, go to: https://bespc.com/grub
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.