Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Magistrate Judge Recommends Dismissal of Securities Claims Against Vince Holding Corporation and Sun Capital Partners
- Client News
- April 14, 2020
Practices
Paul, Weiss secured a victory for luxury apparel company Vince Holding Corporation, certain current and former officers and directors, and its majority owner Sun Capital Partners in a pair of securities class actions.
In their lawsuits filed in 2017 in the Eastern District of New York, certain Vince shareholders alleged that certain defendants made false or misleading statements about Vince’s business operations and prospects by failing to disclose issues with the company’s transition of various IT services from a shared platform to an independent platform.
In her 21-page report and recommendation, Magistrate Judge Anne Y. Shields recommended dismissal, with prejudice and without leave to re-plead, of all claims against all of the defendants, finding that the complaints fail to plead a materially false or misleading statement, or fraud with particularity. Among other things, the magistrate judge agreed with Paul, Weiss that Vince made adequate disclosures regarding the risks of its systems transition, and that the complaints allege only corporate mismanagement, which is insufficient as a matter of law to state a claim for securities fraud. The actions now remain pending only for purposes of addressing any objections to the report and recommendation that the plaintiffs may choose to file.
The Paul, Weiss team includes litigation partners Daniel Kramer and Gregory Laufer and counsel Robert Kravitz.