October 16, 2020 - The Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.
February 18, 2020 - The defendants filed a Motion to Dismiss the consolidated amended Complaint.
December 20, 2019 - A consolidated amended Complaint was filed.
July 23, 2019 - An investor in shares of L Brands, Inc. (NYSE: LB) filed a lawsuit in the U.S. District Court for the Southern District of Ohio over alleged violations of Federal Securities Laws by L Brands, Inc. in connection with certain allegedly false and misleading statements made between May 31, 2018 and November 19, 2018.
According to the complaint the plaintiff alleges on behalf of purchasers of L Brands, Inc. (NYSE: LB) common shares between May 31, 2018 and November 19, 2018, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between May 31, 2018 and November 19, 2018, the L Brands’ Victoria’s Secret and PINK businesses began to experience deteriorating operating performance due to, among other things, increased competition from new lingerie brands, that in an attempt to drive sales and retain market share in the face of increasing competition, Victoria’s Secret and PINK engaged in heavy promotional activities by offering consumers large discounts and even giving items free of charge, that while this marketing strategy helped to mitigate sales declines, it adversely impacted the Company’s profit margins and cash flows and had a deleterious impact on the Company’s liquidity, and that in response to questions from securities analysts about the sustainability of the Company’s dividends, defendants repeatedly stated that L Brands had sufficient cash flow and cash on hand to sustain its dividends and that the Company, “in its history, ha[d] never reduced the dividend.”
Then, on November 19, 2018, L Brands, Inc announced its financial results for the 2018 third quarter, the period ended November 3, 2018. L Brands, Inc also announced that it intended to reduce its annual ordinary dividend to $1.20 from $2.40 beginning with the quarterly dividend to be paid in March 2019 in order to deleverage Company's balance sheet over time.
Shares of L Brands, Inc. (NYSE: LB) declined from $61.45 per share in December 2017 to as low as $21.45 per share in June 2019.