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.
Vince Holding Corporation Wins Dismissal of Securities Claims
- Client News
- September 9, 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 and certain affiliated funds in a pair of securities actions.
In their lawsuits filed in 2018 and 2019 in the Eastern District of New York, putative shareholders alleged that certain defendants made false or misleading statements about Vince’s business operations by failing to disclose issues with the company’s transition of various IT services from a shared platform to an independent platform. On April 14, 2020, Magistrate Judge Anne Shields issued a report recommending that all claims be dismissed with prejudice. Plaintiffs subsequently filed objections to the report and recommendation.
Judge Sandra Feuerstein adopted the report and recommendation in its entirety and dismissed all claims with prejudice, holding that the particular type of software Vince used was not material information that needed to be disclosed to investors and that plaintiffs failed to adequately allege facts giving rise to a strong inference of fraudulent intent, among other grounds. Judge Feuerstein also faulted plaintiffs for failing to provide any legal or factual basis that could cure any of the complaints’ deficiencies.
The Paul, Weiss team included litigation partners Daniel Kramer and Gregory Laufer and counsel Robert Kravitz.