News Page
Published January 13, 2025
Investors in Capri Holdings were left with an empty bag when the FTC blocked a proposed merger with Tapestry. Angry investors quickly sold their shares, sending Capri’s stock price into freefall. Some of those shareholders are now suing the Company to recover their losses.
In 2023, fashion company Capri received a merger offer from a rival fashion firm, Tapestry. Shareholders approved the deal. Executives from both companies assured investors they thought regulators would approve the merger.
But soon after FTC announced an anti-trust investigation, believing the proposed merged company would control too much of the handbag market. Both companies repeatedly assured investors the FTC investigation had no merit. But documents uncovered by the FTC revealed otherwise: the Companies knew their merger had major antitrust issues.
So investors were stunned in September 2024 when a federal court sided with the FTC and blocked the merger. The stock price lost 50% overnight.
Some of those shareholders now are joining a lawsuit against Capri.