Lawsuit Overview
October 6, 2017 - The court granted the stipulation of voluntary dismissal.
October 2, 2017 - A stipulation of voluntary dismissal was filed.
May 8, 2017 - Another investor in shares of Vince Holding Corp (NYSE: VNCE) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Vince Holding in connection with certain allegedly false and misleading statements made between December 8, 2016 and April 27, 2017.
According to the complaint the plaintiff alleges on behalf of purchasers of Vince Holding Corp (NYSE: VNCE) common shares between December 8, 2016 and April 27, 2017, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between December 8, 2016 and April 27, 2017, the defendants issued materially false and/or misleading statements and/or failed to disclose that during the transition from legacy Kellwood systems, Vince experienced issues related to integrating its new enterprise resource planning systems, and that as a result, defendants’ statements about Vince Holding Corp’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
New York based Vince Holding Corp is a United States-based company, which offers a range of women's and men's apparel, women's and men's footwear, and handbags.
Vince Holding Corp reported that its Total Revenue declined from $340.40 million for the 52 weeks period that ended on January 31, 2015 to $302.46 million for the 52 weeks period that ended on Janaury 30, 2016 and that its Net Income for those time periods fell from $35.72 million to $5.10 million.
On December 8, 2016, Vince Holding Corp disclosed that “[t]he Company is currently in the process of transitioning the remainder of the Kellwood systems and services, including…its own enterprise resource planning (“ERP”) and supporting systems and related IT support services.”
On April 14, 2017, Vince Holding Corp disclosed that the filing of its Form 10-K for fiscal year 2016 with the SEC will be delayed due to “the transition from Kellwood, the Company’s former parent company, and the integration of the Company’s new ERP System with its internal business processes and third-party systems.”
On April 28, 2017, Vince Holding Corp reported its fourth quarter and fiscal year 2016 results. Vince Holding Corp reported that its Total Revenue declined from $302.46 million for the 52 weeks period that ended on January 30, 2016 to $268.20 million for the 52 weeks period that ended on January 28, 2017 and that its Net Income of $5.10 million for the 52 weeks period that ended on January 30, 2016 decreased to a Net loss of $162.66 million for the 52 weeks period that ended on January 28, 2017. Vince Holding Corp disclosed that “[r]esults for the fourth quarter came in below our expectations, due primarily to challenges related to our systems conversion.”
On that same day, Vince Holding Corp CEO Brendan Hoffman stated during an earnings call that “a lot of the constraint was due to our systems in last three-months not getting a little bit more product out there.” On that same call, Vince Holding Corp CFO David Stefko stated that “our fourth quarter topline sales results did not meet our expectations, primarily due to the challenges we encountered as a result of our complex systems conversion.”
Shares of Vince Holding Corp (NYSE: VNCE) declined from $37.65 per share in June 2014 to as low as $0.28 per share on May 2, 2017.
May 5, 2017 - An investor in shares of Vince Holding Corp (NYSE: VNCE) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Vince Holding in connection with certain allegedly false and misleading statements made between December 8, 2016 and April 27, 2017.