According to the Complaint, The Children’s Place, Inc. is a specialty portfolio of children’s brands. The Company designs, contracts to manufacture, and sells apparel, accessories and footwear, primarily under its proprietary brands: “The Children’s Place,” “Gymboree,” “Sugar & Jade,” and “PJ Place.” The Company’s retail and wholesale network includes four digital storefronts, more than five hundred stores in North America, wholesale marketplaces and distribution in sixteen countries through six international franchise partners.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company was engaged in aggressive promotions; (2) that, as a result, the Company’s inventory values were overstated; (3) that the foregoing was reasonably likely to have an adverse impact on fiscal 2023 financial results; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.