Stockholder sues Urban Outfitters over stock price decline
New York City -- Urban Outfitters has been sued by a shareholder who alleges company officials misled investors before the stock declined, Bloomberg reported.
The retailer wrongly led shareholders to believe business was going well until March 7, when it reported earnings of 13% less than analysts had suggested, Edward Koller III claims in a lawsuit filed yesterday in federal court in Philadelphia, the report said. Shares fell 17% the next day, Koller said.
Between November and March, the company “engaged in a scheme to deceive the market and a course of conduct that artificially inflated Urban Outfitters’s stock price,” Koller’s attorneys allege in court papers.