This lawsuit is for anyone who acquired securities in The Gap, Inc. (NYSE: GPS) from November 24, 2021 through July 11, 2022.
The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely inform investors that the Company's campaign not to offend people of all body types was leaving the Company with unsalable inventory and shortages of cloths in sizes customers actually want to buy.
On April 21, 2022, after the market closed, the Company announced that the CEO of Old Navy, Nancy Green, had stepped down. On this news, the price of the Company's stock dropped precipitously on unusually heavy trading volume. Then, on May 20, 2022, The Wall Street Journal published an article stating that Old Navy’s inclusive, extended sizing campaign, BODEQUALITY, had resulted in “too many extra-small and extra-large items and too few of the rest, a mismatch that frustrated customers and contributed to falling sales and a management shake-up.” The article also pointed out that Old Navy accounts for 54% of Gap’s sales and roughly 80% of the profits, and that Gap had warned that spring quarter sales would fall short of expectations because of troubles at Old Navy. On this news, the price of the Company's stock again dropped precipitously on unusually heavy trading volume. Then, on May 27, 2022, the Company released its first quarter 2022 financial results, admitting that the results had been “impacted by execution missteps in size and assortment at Old Navy related to BODEQUALITY,” as well as global supply chain disruptions. On this news, the price of the Company's stock again dropped precipitously on unusually heavy trading volume. Finally, on July 11, 2022, after market hours, Gap announced that its President and CEO was stepping down from her position and had resigned from the Board of Directors. On this news, the price of the Company's stock again dropped precipitously on unusually heavy trading volume.
The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in The Gap, Inc. (NYSE: GPS) from November 24, 2021 through July 11, 2022 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.
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I, the Plaintiff, certify that:
1. I have reviewed the Complaint and authorized its filing.
2. Plaintiff did not purchase the security that is the subject of this
action, at the direction of plaintiff's counsel or in order to
participate in any private action arising under this title.
3. I am willing to serve as a representative party on behalf of a class
and will testify at deposition and trial, if necessary.
4. My transactions in the securities, which are the subject of this
action, during the Class Period set forth in the Complaint are as
5. I have not served as a representative party on behalf of a class
under the federal security laws during the last three years, except
if detailed below.
6. I will not accept any payment for serving as a representative party,
except to receive my pro rata share of any recovery or as ordered
or approved by the court including the award to a representative
plaintiff of reasonable costs and expenses (including lost wages)
directly relating to the representation of the class.
agreement and retain the Law Offices of Howard G. Smith and its associates to proceed on Plaintiff's behalf, on a contingent fee basis. If I am executing this agreement on behalf of an institution, I further certify that I am authorized to execute this agreement on behalf of the institution.