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Capri Holdings Files Notice of Appeal

Capri Holdings Files Notice of Appeal

Michael Kors Parent Moves to Overturn Securities Fraud Verdict

Capri Holdings Ltd., the parent company of Michael Kors, Jimmy Choo and Versace, has filed a notice of appeal with the U.S. Court of Appeals for the Second Circuit. The move comes after a jury found the company liable for securities fraud in a class action lawsuit filed by shareholders.

The lawsuit, which was filed in 2019, alleged that Capri Holdings misled investors about the financial performance of its Michael Kors brand. The plaintiffs claimed that the company artificially inflated its sales figures by offering deep discounts and other promotions.

A jury agreed with the plaintiffs and awarded them $50 million in damages. Capri Holdings has denied any wrongdoing and said it will appeal the verdict.

The appeal is likely to focus on the issue of materiality. In order to prove securities fraud, the plaintiffs must show that the alleged misstatements were material, meaning that they would have been important to a reasonable investor in making a decision about whether to buy or sell the company's stock.

Capri Holdings has argued that the alleged misstatements were not material because they did not have a significant impact on the company's financial performance. The plaintiffs, however, have argued that the misstatements were material because they led investors to overvalue the company's stock.

The outcome of the appeal is uncertain. However, if Capri Holdings is successful in overturning the verdict, it could send a chill through the class action securities fraud landscape.