V.F. Corporation Faces Class Action Lawsuit over Alleged Securities Fraud

Strategic Insights -

V.F. Corporation, the parent company of popular fashion brands such as Vans and The North Face, is facing a class action lawsuit over allegations of securities fraud. The lawsuit claims that the company made false and misleading statements about its turnaround plans, resulting in significant losses for shareholders. According to the complaint, V.F. Corporation's stock price plummeted after the company reported a decline in revenue growth and attributed its results to deliberate actions to eliminate unprofitable businesses. The lawsuit seeks to recover losses for shareholders who were affected by the alleged securities fraud between October 30, 2023, and May 20, 2025.

Key Takeaways:

  • The class action lawsuit was filed against V.F. Corporation in response to alleged securities fraud between October 30, 2023, and May 20, 2025.
  • The complaint alleges that V.F. Corporation made materially false and misleading statements about its turnaround plans, resulting in significant setbacks to the company's revenue growth trajectory.
  • The lawsuit claims that V.F. Corporation's stock price declined by 15.8% on May 21, 2025, after the company reported a decline in revenue growth.
  • The complaint describes V.F. Corporation's actions as a "direct effect of deliberately reduced revenue to eliminate unprofitable or unproductive businesses" and "an additional set of deliberate actions" already in-place but previously unannounced.
  • V.F. Corporation's CEO attributed the decline in revenue growth to the company's efforts to eliminate unprofitable businesses, but admitted that the decline would continue through the next quarter.
  • The lawsuit is being led by Levi & Korsinsky, LLP, a nationally-recognized securities litigation firm with extensive expertise representing investors in complex securities litigation.

Statistics:

  • V.F. Corporation's stock price declined by 15.8% to $12.15 per share on May 21, 2025, after the company reported a decline in revenue growth.
  • The decline in revenue growth was attributed to deliberate actions to eliminate unprofitable or unproductive businesses.
  • V.F. Corporation's stock price fell from $14.43 per share on May 20, 2025, to $12.15 per share on May 21, 2025.

Sources:

  • Levi & Korsinsky, LLP (press release on https://zlk.com/pslra-1/v-f-corporation-lawsuit-submission-form?prid=174718&wire=5&utm_campaign=11)
  • V.F. Corporation's earnings report dated May 21, 2025
  • Levi & Korsinsky, LLP's website (https://zlk.com/)