NEW YORK, May 27, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Target Corporation ("Target" or the "Company") (NYSE: TGT) and reminds investors of the May 30, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Target stock or options between August 18, 2021, and May 17, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/TGT.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Target's strategy for mitigating supply-chain constraints by over-ordering inventory had severely limited the Company's ability to timely respond to evolving consumer behavior; (2) as a result, the purported "massive influx of insights" gained from the extraordinary heightened demand during the pandemic could not be leveraged by Target to react to rapidly changing trends; and (3) as a result of Target's inability to timely react to changes in consumer trends, Target's sales declined and the Company was left with an overabundance of inventory, forcing Target to take large markdowns, and severely impacting the Company's financial results. As a result of the foregoing, Target's public statements were materially false and misleading at all relevant times.
Before market opened on May 18, 2022, Target announced results for the first fiscal quarter ended April 30, 2022, including that Fiscal 2022 second quarter gross margin for the quarter was 26.75%, down 426 basis points from the prior year. Target announced gross margins were primarily affected by unanticipated changes in consumer spending, as well as higher supply chain costs. Additionally, Target announced inventory was $15.08 billion, up approximately $1.1 billion compared to fourth fiscal quarter of 2021. Target explained inventories remained elevated versus expectations due to changing consumer spending habits. Target also announced that it was revising its fiscal year 2022 outlook, such that fiscal 2022 guidance concerning operating margin was lower to range centered around 6% from a margin rate of 8% or higher. Target attributed the guidance reduction, in part, to unexpected cost headwinds.
Following this news, Target's stock price fell approximately 25% to close at $161.61 per share on May 18, 2022.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Target's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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