J.Jill, Inc. (Nasdaq: JILL)
A class action has been 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”).
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.
If you are a current shareholder and purchased stock in or traceable to the Company’s March 9, 2017 initial public offering, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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