Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, announces that a federal class action lawsuit has been filed in the United States District Court, Northern District of Illinois, against Ulta Beauty, Inc. (“Ulta” or “Company”) (NASDAQ: ULTA) and several officers and directors for acts taken during the period of March 30, 2016 and February 23, 2018 (the “Class Period”).
Based upon the allegations in the class action, the firm is investigating additional legal claims against the officers and Board of Directors of Ulta. If you are an affected Ulta shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at firstname.lastname@example.org or call toll free at (888) 809-2750. There is no cost or fee to you.
In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants misrepresented and/or failed to disclose during the Class Period that: (i) Ulta was engaged in the widespread practice of repackaging returned cosmetics and re-shelving them alongside unblemished products to sell at full retail price; and (ii) that as a result of the foregoing, Ulta’s public statements were materially false and misleading at all relevant times. After the market closed on February 9, 2018, media outlets reported that a consumer class action lawsuit had been filed against Ulta, alleging that the Company engaged in the “widespread and surreptitious” practice of repacking returned cosmetics and re-shelving them alongside unblemished products to sell at full price. According to the consumer class action complaint, “dozens of other current and former Ulta employees from retail locations all over the country confirmed that substantially similar practices also occurred at the Ulta stores where they worked.”
On this news, Ulta’s share price fell $9.07, or 4.15%, to close at $209.48 on February 12, 2018, the following trading day. Then, on February 23, 2018, CBS News published a story entitled “Former Ulta Beauty employee says she felt pressured to resell used products,” reporting on statements made on Twitter by at least one former Ulta employee, to the effect that Ulta store managers frequently pressured its employees to clean and resell used products. When this news was revealed to the market, Ulta’s share price fell $8.18 or 3.94%, to close at $198.93 on February 26, 2018.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.