Skechers USA Inc. in a statement denied the allegations in the recent alleged shareholder class actions filed by Laborers Local 235 Benefit Fund as frivolous and without merit and plans on defending them vigorously.
David Weinberg, Skechers chief operating officer, commented: “This shareholder lawsuit (Laborers Local 235 Benefit Fund) is without merit. Between October 2017 and July 2018, the company announced four consecutive quarters of record net sales, including our highest quarterly net sales in the first quarter of 2018 and record annual sales for the full-year 2017. (See referenced earnings announcements.) During that time, the company was—and still is—focused on efficiently and strategically growing our business on a global scale. This includes investing in our infrastructure, diligently managing our balance sheet and bringing expenses in line with growth. The lawsuit at best shows a complete misunderstanding of the challenges facing both the international footwear industry and our growth-oriented global business. We will vigorously defend the company and our officers against this frivolous lawsuit in court.”
On September 4, 2018, Laborers Local 235 Benefit Fund filed a securities class action against the company and certain of its officers, in the United States District Court for the Southern District of New York, case 1:18-cv-08039. The lawsuit alleges that between October 20, 2017 and July 19, 2018, the company made materially false statements or omissions of material facts to investors about its operations and prospects.
Skechers will be represented in the lawsuit by Seth Aronson and Abby Rudzin of O’Melveny & Myers in New York and Los Angeles.
