Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Skechers U.S.A., Inc. (SKX)
Gainey McKenna & Egleston
Sep. 06, 2018
NEW YORK, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Sketchers U.S.A, Inc. (“Skechers” or the “Company”) (NYSE: SKX) in the United States District Court for the Southern District of New York on behalf of a class consisting of investors who purchased or otherwise acquired Skechers’ securities between October 20, 2017 and July 19, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The Complaint alleges Skechers officials schemed to artificially inflate the price of the Company’s stock for the personal gain of Skechers’ founding family. As part of their scheme, Skechers officials touted the Company’s strong sales growth while having no regard for the unsustainable increases in Selling, General & Administrative (“SG&A”) expenses. Meanwhile, members of Skechers’ founding family sold hundreds of thousands of Skechers shares during the Class Period for $32 million in proceeds. Skechers did not have the operational infrastructure to meet the demand for its products in many of its international markets. On July 19, 2018, Skechers announced that SG&A expenses grew by nearly 20%, causing earnings from operations to decrease by 5.7% and net earnings to decline by almost 24%. Since April 18, 2018, when news of Skechers’ increasing SG&A expenses first became public, its stock has fallen over 32% to close at $28.71 per share on September 5, 2018.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the November 5, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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