In re Ascena Retail Grp., Inc. Sec. Litig.

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June 28, 2022
5137 Women's, Children's, and Infants' Clothing and Accessories
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securities litigation
goodwill, business valuation, impairment, intangible assets, securities, earnings, chapter 11, trademark

In re Ascena Retail Grp., Inc. Sec. Litig.
2022 U.S. Dist. LEXIS 114434; 2022 WL 2314890
United States
Federal Court
New Jersey
United States District Court
Kevin McNulty

Summary

In this securities putative class action litigation, plaintiff shareholders alleged that the defendants (Ascena) misrepresented the value of Ascena’s goodwill and trade names in order to inflate Ascena’s stock price artificially. In June 2017, Ascena announced an impairment charge to those assets of $1.3 billion “causing Ascena's already-declining share price to fall precipitously. Ascena ultimately declared Chapter 11 bankruptcy in July 2020.” The defendants moved to dismiss for failure to plead material misrepresentation or scienter or both. The court granted the motion to dismiss but allowed the plaintiffs to amend their complaint.
In re Ascena Retail Grp., Inc. Sec. Litig.
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See Also

New Jersey U.S. District Court Dismisses Plaintiffs’ Complaint That Public Company Defendant Overvalued Its Goodwill

In this securities putative class action litigation, plaintiff shareholders alleged that the defendants (Ascena) misrepresented the value of Ascena’s goodwill and trade names in order to inflate Ascena’s stock price artificially. In June 2017, Ascena announced an impairment charge to those assets of $1.3 billion “causing Ascena's already-declining share price to fall precipitously. Ascena ultimately declared Chapter 11 bankruptcy in July 2020.” The defendants moved to dismiss for failure to plead material misrepresentation or scienter or both. The court granted the motion to dismiss but allowed the plaintiffs to amend their complaint.