A class action has been filed on behalf of a proposed class of Canada Goose investors who allege the luxury outerwear brand concealed inhumane treatment of animals it sourced materials from, causing a stock price decline after the company came under scrutiny for falsely advertising about its practices. According to the complaint, a series of revelations about the company’s sourcing, including a news release by People for the Ethical Treatment of Animals, a media report and a Federal Trade Commission investigation of the company’s advertising, all contributed to a “precipitous decline” in the price of the company’s stock.
The complaint claims these revelations on the sourcing were met with per-share stock drops of about 1.36% to almost 5%. The proposed class would include those who purchased Canada Goose stock between March 16, 2017, when the company started trading on the New York Stock Exchange after its initial public offering, and Aug. 1, 2019, when the media report was published.
The case is Cheng v. Canada Goose Holdings Inc. et al., Case Number 1:19-cv-08204, in the U.S. District Court for the Southern District of New York.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.