A Class Action Lawsuit Against Urban Outfitters
Last Thursday, a New York man filed a class action suit in federal court against Philadelphia-based Urban Outfitters alleging that the company “engaged in a scheme to deceive the market and a course of conduct that artificially inflated Urban Outfitters’ stock price and operated as a fraud or deceit… by misrepresenting the company’s operating condition and future business prospects.” According to court documents, investor Edward Koller III maintains that Urban CEO Glen Senk, who is named individually in the suit, led shareholders to believe that business was brisk until March 7th, when the company announced that its earnings were much less than predicted. On March 8th, shares sank nearly 20 percent, and Koller and his fellow investors lost a lot of money. The suit does not specify damages. If Koller’s allegations are true, the matter would be of great interest to the Securities & Exchange Commission. A call to Urban seeking comment was not immediately returned.