Entwistle & Cappucci LLP (“Entwistle & Cappucci”) today announced it has filed a class action complaint in the United States District Court for the District of Delaware (the “Court”) against Capri Holdings Limited (“Capri”), Tapestry Inc. (“Tapestry”) and certain Capri and Tapestry senior officers and directors (collectively, “Defendants”) on behalf of a class (“Class”) consisting of all persons who purchased Capri common stock or sold Capri puts between August 10, 2023 and October 24, 2024, both dates inclusive (collectively, “Class Members”).

The case, captioned FNY Partners Fund LP v. Capri Holdings Limited, et al., No. 25-cv-116 (D. Del.) (the “Action”), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Capri owns several consumer brands such as Michael Kors, which manufactures and sells handbags, among other things. Tapestry similarly owns brands such as Coach and Kate Spade. Like Michael Kors, Coach and Kate Spade manufacture and sell, among other things, handbags.

The complaint alleges Defendants repeatedly issued or caused to be issued materially false or misleading statements or omitted material facts concerning the proposed $8.5 billion acquisition of Capri by Tapestry, and the inherent risk of regulatory scrutiny of the merger based on violations of federal antitrust laws.

On October 24, 2024, Judge Jennifer L. Rochon of the U.S. District Court for the Southern District of New York granted the U.S. Federal Trade Commission’s motion to preliminarily enjoin the acquisition of Capri by Tapestry. In her ruling, Judge Rochon concluded that a “substantial body of compelling evidence” demonstrated that, in contrast to their public statements, Defendants internally believed their brands were direct competitors in a well-defined “accessible luxury handbag market.” Judge Rochon ruled the merger would eliminate fierce head-to-head competition between Capri and Tapestry – two of the largest U.S. handbag makers – and create a massive company that could unfairly raise prices. On this news, the price of Capri stock dropped $20.34 per share – a decline of nearly 50% of the stock’s opening value on October 24, 2024.

If you are a member of the Class and were damaged by the conduct alleged in this Action, you may be able to seek appointment as lead plaintiff. The lead plaintiff is a Court-appointed representative for absent members of the Class. Any member of the proposed Class may move the Court to serve as a lead plaintiff through counsel of their choice, or they may choose to do nothing and remain a member of the Class. If you are a Class Member and there is a recovery for the Class, you can share in that recovery without seeking appointment as a lead plaintiff, but as an absent Class Member. If you wish to serve as a lead plaintiff in this matter, you must file a motion with the Court no later than February 21, 2025.

In the interim, if you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact: Robert N. Cappucci, Esq. or Jonathan H. Beemer, Esq. of Entwistle & Cappucci at (212) 894-7200, or via e-mail at rcappucci@entwistle-law.com or jbeemer@entwistle-law.com.

About Entwistle & Cappucci

Entwistle & Cappucci is a national law firm providing exceptional legal representation to clients in the most complex and challenging legal matters. Our practice encompasses all areas of litigation, corporate transactions, bankruptcy, insurance, corporate investigations and white-collar defense. Our clients include public and private corporations, major hedge funds, public pension funds, governmental entities, leading institutional investors, domestic and foreign financial services companies, emerging business enterprises and individual entrepreneurs.

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