Global footwear leader Skechers is denying allegations in the recent alleged shareholder class action lawsuit against them, and plans a fierce defense.
On Oct. 20 of this year, the Steamfitters Local 449 Pension Plan, the plaintiff in the case, filed a securities class action lawsuit against Skechers and some of its officers in the U.S. District Court for the Southern District of New York. The claim alleges that, between April 23 and Oct. 22, Skechers made materially false statements or omissions of material fact about the expected performance of its domestic wholesale business segment. The plaintiff, who filed the lawsuit on behalf of itself and allegedly other shareholders who bought Skechers stock during a five-month period in 2015, is seeking claims for unspecified damages, attorneys’ fees and equitable relief based on alleged violations of federal securities laws.
“These lawsuits are frivolous, coming two years after the fact and immediately after we reported a new quarterly sales record for the third quarter of 2017,” said David Weinberg, Skechers chief financial officer. “Further, the allegations are about the third quarter of 2015, which at the time was a quarterly net sales record for the company, and both the earnings from operations and net earnings for the same period in 2015 were an impressive increase over the prior year.”
Weinberg says the lawsuit is an attempt to distract investors, the industry and consumers from the company’s record third quarter 2017 earnings, which were coincidentally announced one day before the lawsuit was filed.
“We announced three consecutive record quarters in 2017, which followed annual record net sales in 2016. Our record net sales in both 2016 and 2017, as well as that of 2015, are a testament to the power and continuing strength of our global brand. These lawsuits are without merit, and we will be vehemently defending the company and our officers in court.”