Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Target Corporation (“Target” or the “Company”) (NYSE: TGT) common stock between August 18, 2021 and May 17, 2022, inclusive (the “Class Period”). Target investors have until May 30, 2023 to file a lead plaintiff motion.
If you suffered a loss on your Target investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/target-corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On May 18, 2022, Target released its first quarter 2021 financial results, disclosing that the Company’s revenue had declined by nearly 19%, while its gross margin had fallen by 4.3%. The Company explained that its practice of ordering inventory before it was needed, while previously considered “durable” and “flexible,” had now resulted in overstocked, unsellable inventory, taking up space and leaving Target unable to quickly pivot to meet changing consumer preferences and with an inventory increase of nearly $1.1 billion over the previous quarter. Furthermore, the Company stated that it expected the excess inventory to negatively affect earnings into the next quarter.
On this news, Target’s stock price fell $53.67, or 24.9%, to close at $161.61 per share on May 18, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the true extent of Target's difficulty maintaining a balanced inventory of in-demand goods, despite its insights into changing consumer preferences; (2) that Target was severely impacted by changing consumer preferences; (3) that Target's inventory mix was significantly more sensitive to changing consumer preferences due to Target's practice of buying larger quantities ahead of season, and was therefore at significant risk of having to use markdowns to sell out-of-demand goods; and (4) that, as a direct result of these changing preferences, Target's inventory increasingly became out-of-balance and overweight in bulky and unsellable goods throughout the Class Period forcing Target to mark down its out-of-demand goods, thereby negatively impacting revenue; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Target common stock during the Class Period, you may move the Court no later than May 30, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067