Litigators Secure Dismissal of Securities Class Action for Canada Goose
A Ropes & Gray litigation team led by litigation & enforcement partners Marty Crisp and Rob Jones successfully defended Canada Goose Holdings Inc. against accusations that it misled investors about future demand and shifts in the timing of customer purchases, after a federal judge in New York granted the team’s motion to dismiss.
The securities class action was filed in September 2019 in the Southern District of New York against Canada Goose and its officers under Section 10(b) of the Exchange Act. The plaintiffs also filed claims against Bain Capital, Canada Goose’s majority stockholder. The plaintiffs alleged that the company made false and misleading statements regarding its inventory and anticipated demand for its products, and that Bain caused the company to make those statements. In a significant victory, the court ruled that the plaintiffs did not adequately plead any material misstatements or omissions, and even if they had, the complaint lacked sufficient allegations that the defendants meant to mislead them.
Ropes & Gray is also representing Canada Goose in a putative class action in the Southern District of New York, alleging that the labeling attached to certain of the company’s products is deceptive and misleading, in violation of the D.C. Consumer Protection Procedures Act and various state consumer protection laws.
In addition to Marty and Rob, the Ropes & Gray team also includes litigation & enforcement associate Deanna Minasi.