US: Investors file lawsuits against Crocs over diclosure matter
Footwear specialist Crocs is facing renewed legal action over claims that the company allegedly failed to disclose facts to investors about distribution problems in Europe and Asia ahead of its Q3 earnings statement.
A week after it was reported that the US company was facing two lawsuits accusing top executives of making "false and misleading" statements about its operations, a class action has been filed by Pennsylvania law firm Schiffrin Barroway Topaz & Kessler.
Filing in the US District Court of Colorado, the action has been launched on behalf of buyers of shares in Crocs between 27 July and 31 October this year.
The suit alleges that Crocs failed to disclose that the company was experiencing "significant" distribution problems in Europe and Asia, leading to the potential loss of US$20m in sales in Europe, and $10-15m in Asia.
When the problems were reported in the company's third quarter results on 31 October, Crocs' share price fell by more than 36% to $47.74 in one day's trading, Schiffrin said.
Crocs has said that it intends to defend the lawsuits.
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