This case was last updated from U.S. District Courts on 09/07/2022 at 10:03:42 (UTC).

Shanaphy v. Kohls Corporation et al

Case Summary

On September 2, 2022, Sean Shanaphy (“Plaintiff”), individually and on behalf of all others similarly situated, represented by Jeremy A. Lieberman and Joseph A. Hood, II of Pomerantz LLP, filed a class action lawsuit against Kohl’s Corporation (“Kohl’s” or the “Company”), Michelle Gass, Jill Timm, Michael Bender, Peter Boneparth, Yael Cosset,  Christine Day,, H. Charles Floyd, Margaret Jenkins, Thomas Kingsbury, Robbin Mitchell, Jonas Prising, John E. Schlifske, Adrianne Shapira, and Stephanie A. Streeter, (collectively, “Defendants”), seeking damages for alleged the violation of the Securities Exchange Act (the “Exchange Act”). This case was filed in the U.S. District Court for the Eastern District of Wisconsin, with Judge William E. Duffin presiding. 

Plaintiff brings this action as a class action pursuant to Federal Rule of Civil Procedure 23(a) and (b)(3).

In the complaint, Plaintiff stated, “Kohl’s operates as a retail company in the U.S. The Company offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. In October 2020, Kohl’s announced that it had entered into a new strategic framework to ‘drive top-line growth’, ‘expand operating margin’, and become ‘the most trusted retailer of choice for the active and casual lifestyle’ (the ‘Strategic Plan’)."

Plaintiff alleged, “Kohl’s announced that the Company was ‘focused on increasing profitability with a goal of expanding its operating margin to 7% to 8%’. In announcing the Strategic Plan, the Company touted its purportedly strong foundation of customers, industry-leading loyalty and charge card programs, high volume of stores, and large and growing digital business.”

Plaintiff further alleged, “Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that Kohl’s Strategic Plan was not well tailored to achieving the Company’s stated goals, the Defendants had likewise overstated the Company’s success in executing its Strategic Plan, Kohl’s had deficient disclosure controls and procedures, internal control over financial reporting, and corporate governance mechanisms.”

Plaintiff also alleged, “As a result, the Company’s Board was able to and did withhold material information from shareholders about the state of Kohl’s in the lead-up to the Company’s annual meeting, all the foregoing, once revealed, was likely to have a material negative impact on Kohl’s financial condition and reputation, and as a result, the Company’s public statements were materially false and misleading at all relevant times.”

Plaintiff then alleged, “On May 19, 2022, Kohl’s issued a press release announcing the Company’s fiscal Q1 2022 results, reporting, among other items, a net sales figure expected to grow up to only 1% earnings per share of $0.11 (missing estimates by $0.59), a revenue figure which only barely edged expectations, and the Company’s decision to cut its full year earnings forecast.”

Plaintiff also alleged, “Then, on May 20, 2022, Macellum Advisors GP, LLC (‘Macellum’), ‘a long-term holder of nearly 5% of the outstanding common shares of Kohl’s’, issued a statement’. On this news, Kohl’s stock price fell $5.84 per share, or 12.97%, to close at $39.20 per share on May 20, 2022. As a result of Defendants’ wrongful acts and omissions, Plaintiff and other Class members have suffered significant losses and damages.”

Plaintiff listed two claims for relief, including for the alleged violation of sections 10 (b), 20 (a) and Rule 10b – 5 of the Exchange Act. 

In the prayer for relief, Plaintiff requested an award for damages along with costs of litigation. 

This is a summary of a legal complaint. All statements, claims, and allegations listed herein reflect the position of the plaintiff only and do not represent the position of UniCourt. Additionally, this case summary may not reflect the current position of the parties to this litigation or the current status of this case. To view the latest case updates and court documents, please sign up for a UniCourt account.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:22-CV-01016

  • Filing Date:

    09/02/2022

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

William E Duffin

 

Party Details

Plaintiff

Sean Shanaphy

Defendants

Kohls Corporation

Michelle Gass

Jill Timm

Michael Bender

Peter Boneparth

Yael Cosset

Christine Day

H Charles Floyd

Margaret Jenkins

Thomas Kingsbury

Robbin Mitchell

Jonas Prising

John E Schlifske

Adrianne Shapira

Stephanie A Streeter

Attorney/Law Firm Details

Plaintiff Attorneys

Joseph Alexander Hood, II

Attorney at Pomerantz LLP

600 Third Ave 20Th Floor

Jeremy A Lieberman

Attorney at Pomerantz LLP

600 Third Ave - 20Th Fl

New York, NY 10016

 

Court Documents

#1

(#1) COMPLAINT with Jury Demand; against Michael Bender, Peter Boneparth, Yael Cosset, Christine Day, H. Charles Floyd, Michelle Gass, Margaret Jenkins, Thomas Kingsbury, Kohls Corporation, Robbin Mitchell, Jonas Prising, John E. Schlifske, Adrianne Shapira, Stephanie A. Streeter, Jill Timm by Sean Shanaphy. ( Filing Fee PAID $402 receipt number AWIEDC-4201945) (Attachments: #1 Certification, #2 Schedule A, #3 Civil Cover Sheet, #4 Proposed Summons)(Lieberman, Jeremy)

1 #1

Certification

1 #2

Schedule A

1 #3

Civil Cover Sheet

1 #4

Proposed Summons

#2

(#2) DISCLOSURE Statement by Sean Shanaphy. (Lieberman, Jeremy)

 

Docket Entries

  • 09/02/2022
  • DocketSummons Issued as to All Defendants. (lz)

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  • 09/02/2022
  • DocketNOTICE Regarding assignment of this matter to Magistrate Judge William E Duffin; Consent/refusal forms for Magistrate Judge Duffin to be filed within 21 days; the consent/refusal form is available #here. Pursuant to Civil Local Rule 7.1 a disclosure statement is to be filed upon the first filing of any paper and should be filed now if not already filed. (cmb)

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  • 09/02/2022
  • View Court Documents
  • Docket(#2) DISCLOSURE Statement by Sean Shanaphy. (Lieberman, Jeremy)

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  • 09/02/2022
  • View Court Documents
  • Docket(#1) COMPLAINT with Jury Demand; against Michael Bender, Peter Boneparth, Yael Cosset, Christine Day, H. Charles Floyd, Michelle Gass, Margaret Jenkins, Thomas Kingsbury, Kohls Corporation, Robbin Mitchell, Jonas Prising, John E. Schlifske, Adrianne Shapira, Stephanie A. Streeter, Jill Timm by Sean Shanaphy. ( Filing Fee PAID $402 receipt number AWIEDC-4201945) (Attachments: #1 Certification, #2 Schedule A, #3 Civil Cover Sheet, #4 Proposed Summons)(Lieberman, Jeremy)

    Read MoreRead Less
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