Shareholder rights law firm Robbins Arroyo LLP is investigating
whether certain officers and directors of Ulta Beauty, Inc. (NasdaqGS:
ULTA) breached their fiduciary duties to shareholders. Ulta is a beauty
retailer in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/ulta-beauty-inc
Ulta Accused of Selling Used Products as New
Purchasers of Ulta filed a securities class action complaint against the
company's officers and directors for alleged violations of the
Securities Exchange Act of 1934 between March 30, 2016 and February 23,
2018. According to the complaint, Ulta represented that the company's
returned merchandise policy "does not permit the resale of used,
damaged, or expired products" and that Ulta aimed to ensure that only
the highest quality products are sold in its stores and online. Contrary
to these representations, Ulta engaged in the widespread practice of
reselling unsanitary used cosmetics as new. On February 9, 2018, media
outlets reported that a consumer class action had been filed against
Ulta alleging that Ulta was repacking returned cosmetics and re-shelving
them alongside unblemished products to sell at full price. Then,
according to a CBS News report on February 23, 2018, a former
Ulta employee revealed that Ulta management frequently pressured
employees to resell used products. Since news of Ulta's surreptitious
practices became public, Ulta's stock fell nearly 9% to close at $198.93
per share on February 26, 2018.
Ulta Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180313006501/en/