SAN DIEGO & NEW YORK--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Vince Holding Corp. (VNCE) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 19, 2015 and May 19, 2017. Vince is a luxury clothing brand based in New York City.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/vince-holding-sept-2018/
Vince Mislead Investors Regarding its Systems Migration Efforts
According to the complaint, Vince made a series of misstatements and bad business decisions that resulted in a devastating loss of market value for the company. Vince is majority owned and controlled by private equity firm Sun Capital Partners, Inc. and its affiliates, and was formed from assets of Kellwood Company, which was wholly-owned by Sun Capital. After the initial offering, Vince relied on certain administrative, financial, operational, and other support services provided by Kellwood. Eventually, Vince migrated these services to its own systems and those provided by third parties. Despite assurances from company executives that the transition was a smooth one, in reality, issues with the new systems impeded the ability of stores to timely process credit card transactions, and resulted in delivery delays, inventory systems failures, and lost customer transactional data. As the quality of the customers' experience with the company deteriorated, Vince's sales plummeted. Vince belatedly acknowledged the implications of its migration efforts after sales and earnings shortfalls, and warned that the new systems had led to one or more material weaknesses in its internal controls over financial reporting and systems infrastructure. Vince's market capitalization, estimated at more than $1 billion following the IPO, was valued at just over $47 million and at risk of being delisted from the New York Stock Exchange at the end of the class period.
Vince Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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