Robbins Arroyo LLP: Skechers U.S.A., Inc. (SKX) Misled Shareholders According to a Recently Filed Class Action
Sep. 05, 2018
SAN DIEGO & MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--Sep 5, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Skechers U.S.A., Inc. (NYSE: SKX) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between October 20, 2017 and July 19, 2018. Skechers designs, develops, markets, and distributes footwear for men, women, and children.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/
Skechers Accused of Unjustifiably Inflating the Company's Sales Growth
According to the complaint, 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. In reality, 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.
Skechers 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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View source version on businesswire.com:https://www.businesswire.com/news/home/20180905006030/en/
CONTACT: Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 09/05/2018 06:47 PM/DISC: 09/05/2018 06:47 PM