Case Summary

The Children’s Place

NASDAQ: PLCE

Case Details

  • Khalsa v. The Children's Place, Inc. et al
  • Class Period:March 16, 2023 - February 8, 2024
  • Date Filed:February 28, 2024
  • Jurisdiction:U.S. District Court, District of New Jersey
  • Docket Number: 2:24-cv-01182
  • Lead Plaintiff Deadline: April 29, 2024
Days Left to
Seek Plaintiff
6

Overview

A class action lawsuit has been filed against The Children’s Place, Inc. (“The Children’s Place” or the “Company”) (NASDAQ: PLCE) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Children’s Place lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired The Children’s Place securities between March 16, 2023 and February 8, 2024, both dates inclusive (the “Class Period”), and investors have until April 29, 2024 to seek appointment as lead plaintiff of The Children’s Place class action lawsuit.

The Children’s Place is a specialty portfolio of children’s brands.  The Company designs, contracts to manufacture, and sells apparel, accessories, and footwear, primarily under its proprietary brands: “The Children’s Place,” “Gymboree,” “Sugar & Jade,” and “PJ Place.”  The Company’s retail and wholesale network includes four digital storefronts, more than 500 stores in North America, wholesale marketplaces, and distribution in 16 countries through six international franchise partners.

On February 9, 2024, before the market opened, The Children’s Place announced its preliminary fourth quarter and fiscal year 2023 financial results.  Therein, the Company revealed that it now expected fourth quarter net sales between $454 million and $456 million, falling short of previously issued guidance.  The Company also disclosed that it would expect to incur an adjusted operating loss in the fourth quarter in range of 9.0% to 8.0% of net sales, which reflected the impact of lower-than-expected merchandise margins resulting from more aggressive promotions in an effort to maximize sales, higher-than-anticipated split shipments to meet customer e-commerce demand, and increased inventory valuation adjustment.  On this news, the Company’s share price fell $7.25 or 37%, to close at $12.51 per share on February 9, 2024, on unusually heavy trading volume.

The lawsuit alleges that Defendants, throughout the Class Period, 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 that: (1) the Company was engaged in aggressive promotions; (2) as a result, the Company’s inventory values were overstated; (3) the foregoing was reasonably likely to have an adverse impact on fiscal 2023 financial results; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.  As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, class members have suffered significant losses and damages.

*          *         *

If you purchased or otherwise acquired The Children’s Place (NASDAQ: PLCE) securities between March 16, 2023, and February 8, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in The Children’s Place lawsuit is April 29, 2024.

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