Coach Inc. Investor Class Action Lawsuit - 04/14/2009
On Tuesday, April 14, 2009, an investor in Coach, Inc. (NYSE:COH) filed a proposed securities class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Coach, Inc. (NYSE:COH) publicly traded securities during the period between January 23, 2007 and October 22, 2007 against Coach, Inc and certain of its officers and directors over alleged Federal Securities Laws violations.
According to the complaint the plaintiff alleges that Coach, Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by reporting between January 23, 2007 and October 22, 2007, strong growth for Coach, Inc and forecast similar growth going forward, while failing to disclose that its growth rate was, in fact, unsustainable. Then, on October 23, 2007, before the market opened, Coach, Inc announced that although its fiscal first-quarter profit rose 23%, traffic in its U.S. retail stores was weak and Coach expected a slow-down in the coming holiday season. As a result of this announcement, Coach’s stock (NYSE:COH) price dropped $4.87 per share (or 12%) to close at $36.60 per share on October 23, 2007, so the lawsuit.