Ascena Retail Group, Inc. (ASNA) Subject Of A Class Action Lawsuit

Ascena Retail Group, Inc. (ASNA), a publicly-traded women’s clothing retailer that owns brands such as Ann Taylor, Dress Barn, and Lane Bryant, is the subject of a class action lawsuit filed on behalf of shareholders who lost money investing in the company.

Ascena Class Period And Lead Plaintiff Deadline

Investors who purchased shares of Ascena between September 16, 2015 and June 8, 2017 (the class period) may be eligible to participate in the lawsuit, which concerns violations of federal securities laws.

The deadline to apply to the court to be appointed as lead plaintiff, also called class representative, is August 6, 2019.

The lawsuit alleges that Ascena made false and misleading statements related to their acquisition of ANN, Inc., the company that markets brands such as Ann Taylor and Loft. The lawsuit alleges that ANN’s operations were in much worse condition than the market was led to believe, that Ascena overvalued ANN’s brands, and that the company delayed recognizing an impairment charge to hide the problem. The delay caused the company to overstate its income and assets and its financial results to not conform to generally accepted accounting principles (GAAP).

Because of the information withheld from the market, Ascena’s stock price was artificially inflated during the class period. On May 17, 2017, Ascena announced that it was revising its 2017 sales and earnings outlook and that it would be taking an impairment charge. On that news, its stock dropped 26%, to $2.06 per share, causing significant damage to shareholders. On June 8, 2017, Ascena announced a loss of $5.29 per share and an impairment charge of $1.324 billion.

Recovering Money Lost With Ascena Retail Group, Inc. (ASNA) Stock

If you suffered losses with Ascena, you may be able to recover some of your losses by participating in the lawsuit.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.