Canada Goose Holdings Inc. (GOOS) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between March 16, 2017 and August 1, 2019, on November 2, 2017, the non-profit organization People for the Ethical Treatment of Animals (“PETA”) issued a press release alleging that Canada Goose suppliers used unethical measures to obtain the down and fur used in creating its clothing merchandise and proceeded to file a complaint with the Federal Trade Commission (“FTC”). Following PETA’s statement, Canada Goose continued to represent that its materials were obtained in an ethical and humane manner. Then, on June 17, 2019, the FTC issued a closing letter stating that it had completed its investigating into Canada Goose’s advertising practices. The FTC concluded that it was unable to find anything that warranted enforcement action because the company had “remov the advertising claims at issue,” but noted that it was not making a determination that “a violation of law did not occur.” Finally, on August 1, 2019, the New York Post published an article reporting that Canada Goose had abandoned its claims of ethical treatment of its animals on its website. Since this news, Canada Goose’s stock price has fallen $7.62, or 16%, and currently trades at $39.17.
