Johnson Fistel, LLP Files Class Action Suit against J.Jill, Inc.; Shareholders Encouraged to Contact Firm
PR Newswire San Diego, October 14, 2017
Shareholder rights law firm Johnson Fistel, LLP announces that a class action has commenced on behalf of purchasers of J.Jill, Inc. (“J.Jill”) (NYSE:Jill) common stock in or traceable to the Company’s March 9, 2017 initial public offering (the “IPO”). This action was filed in the District of Massachusetts and is captioned Branen v. J.Jill, Inc., et al., No. 17-cv-11980.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 13, 2017.
If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number.
If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.johnsonfistel.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint charges J.Jill, certain of its officers and directors, certain of the underwriters of the IPO and J.Jill’s controlling shareholder with violations of the Securities Act of 1933. J.Jill is a specialty apparel brand focused on affluent women in the 40 to 65 age segment.
On or about February 10, 2017, the Company filed with the SEC a registration statement on Form S-1 for the IPO, which was subsequently amended and declared effective on March 8, 2017 (the “Registration Statement”). On March 9, 2017, the Registration Statement was used to sell approximately 12.5 million shares of J.Jill common stock to the investing public at $13 per share.
According to the complaint, the Registration Statement communicated that the Company’s unique business strategy had insulated it from adverse industry trends and, as a result, J.Jill would be able to continue to grow its gross profits. The complaint asserts that the statements in the Registration Statement were false and misleading when made because the Company’s purportedly unique and superior sales and marketing approach had not insulated the Company from adverse trends affecting the overall retail industry. Moreover, the Company was carrying increasing amounts of slow moving inventory and would need to significantly markdown sale items and increase promotional efforts in an attempt to continue its sales growth, and the Company’s brick-and-mortar stores were experiencing difficulty attracting customers and maintaining profitability, which would result in the Company shuttering up to eight stores in fiscal 2017 – thereby diminishing the Company’s gross margins and impairing its ability to service its long-term debt. On October 12, 2017, J.Jill common stock closed at $4.86 per share, or more than 62% below its offering price only seven months after the IPO.
Plaintiff seeks to recover damages on behalf of all purchasers of J.Jill common stock in or traceable to the Company’s March 9, 2017 IPO (the “Class”).
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.