Entwistle & Cappucci has filed a class action suit against Capri and Tapestry over the “misleading statements” related to their now-terminated $8.5 billion merger.
The lawsuit represents all persons who purchased Capri common stock or sold Capri puts between August 10, 2023 and October 24, 2024.
The defendants in this case include the two companies and some of their senior officers and directors.
The complaint alleges the defendants “repeatedly issued or caused to be issued materially false or misleading statements or omitted material facts” concerning the proposed $8.5 billion acquisition of Capri by Tapestry, and the inherent risk of regulatory scrutiny of the merger based on violations of federal antitrust laws.
In October, the US District Court for the Southern District of New York allowed the Federal Trade Commission to block the merger. Judge Jennifer Rochon ruled the deal would eliminate fierce head-to-head competition between the two companies, which could lead to unfairly raise prices.
On this news, the price of Capri stock dropped $20.34 per share – a decline of nearly 50 per cent of the stock’s opening value on October 24.
In November, the two companies terminated their merger agreement, a month after they said they would appeal the court decision.