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NEW YORK, NY / ACCESSWIRE / September 13, 2019 / Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Canada Goose Holdings Inc. (“Canada Goose” or the “Company”) (GOOS) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Canada Goose securities between March 16, 2017 and August 1, 2019, both dates inclusive. Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/goos.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that:(1) Canada Goose sourced the down and fur used in its clothing products in a way that treated animals in an unethical and inhumane manner; (2) Canada Goose was thus non-compliant with relevant FTC regulations pertaining to false advertising with respect to its sourcing practices; (3) accordingly, Canada Goose was the subject of an ongoing FTC investigation regarding false advertising; and (4) consequently, the Company’s public statements were materially false and misleading at all relevant times.
On November 2, 2017, the non-profit organization People for the Ethical Treatment of Animals (“PETA”) issued a press release alleging that Canada Goose suppliers used unethical measures to obtain the down and fur used in creating the Company’s clothing merchandise (the “PETA Press Release”). The PETA Press Release also stated that PETA had issued a complaint to the FTC regarding these practices because the Company represented in communications and promotional materials that its clothing was produced with down and fur from sources that treated the animals used in sourcing those materials ethically and humanely. Following this news, Canada Goose’s stock price fell $0.70 per share, or roughly 3.27%, to close at $20.72 on November 2, 2017.
Nevertheless, even after the PETA Press Release, Canada Goose continued to represent that the down and fur used in producing its clothing products were collected using humane and ethical practices. Then, on June 17, 2019, the United States Federal Trade Commission (“FTC”) issued a closing letter to Canada Goose’s legal counsel. The FTC Closing Letter stated that the FTC had investigated Canada Goose’s advertising practices for possible violations of the Federal Trade Commission Act (“FTC Act”), citing “concern[s] that Canada Goose may have made false or misleading representations about the treatment of geese whose down is used in Canada Goose’s apparel.” The FTC further stated that it had not recommended enforcement action against Canada Goose because the Company had “remov[ed] the advertising claims at issue from the marketplace and clarify[ied] its business practices in marketing materials.” However, the FTC expressly stated that “[t]his action is not to be construed as a determination that a violation of law did not occur” and “reserve[d] the right to take further action as the public interest may warrant,” Following this news, Canada Goose’s stock price fell $0.50 per share, or 1.36%, to close at $36.17 on June 17, 2019.