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Signet Says Shareholder Suit Lacks Merit
Apr 4, 2017 11:06 AM
By Rapaport News
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RAPAPORT... Signet Jewelers has dismissed a lawsuit that claims the
retailer misled the public about an arbitration case during which allegations
of sexual harassment surfaced.
The suit, which was filed last week, alleges that Signet and
certain executives “violated federal securities laws by disseminating false or
misleading statements to the investing public about the true nature and
severity of the allegations in the arbitration.”
The plaintiff in the case is Irving Firemen’s Relief &
Retirement System, an institutional investor in Signet. It alleges that the
company and certain officers downplayed allegations by plaintiffs in an ongoing
arbitration case regarding alleged discrimination over pay and promotion.
As a result, the suit says, Irving and other stockholders
suffered damages when Signet’s shares fell 13% last month, after The Washington
Post reported that sworn statements from the arbitration revealed allegations
of widespread sexual harassment at Signet.
Signet’s stock traded at what the suit calls “artificially
inflated prices” between August 29, 2013, and February 27, 2017 – the period
during which Irving purchased shares. Once the Post’s report hit the
market, the stock dived, “causing economic harm and damages to plaintiff and
class members,” the suit argues.
In response, Signet declared the lawsuit to be “without
merit,” vowing to defend itself vigorously against it.
“Since the arbitration case was filed in 2008, Signet has
fully met its disclosure requirements,” the company said this week. “Contrary to
the shareholder suits and earlier media coverage, the arbitration case is
focused on the company’s pay and promotions practices for women in certain
positions within our field operations team, not sexual harassment.
“In fact, there are no legal claims on behalf of the class
alleging sexual harassment,” it continued. “Any references to such allegations
to support claims of intentional discrimination in pay and promotions were
rejected by the arbitrator several years ago.”
Main image: Newscast
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Tags:
arbitration, Irving Firemen’s Relief & Retirement System, lawsuit, Rapaport News, Signet, Signet Jewelers
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