Canada Goose Holdings Inc. (TSX & NYSE: GOOS)
Ontario Superior Court of Justice, Court File No.: CV-20-00633971-00CP
Quebec Superior Court of Justice, Court File No.: 500-06-1038-203
This securities class action relates to the Defendant releasing core documents which contained untrue statements of material fact regarding how Canada Goose Holdings Inc. (“GOOS”) sourced its down and fur for its products.
Prior to October 2018, GOOS released statements alleging that:
We are committed to the sustainable and ethical sourcing of our raw materials. We have introduced comprehensive traceability programs for fur and down throughout our supply chain which we expect will be fully in effect during the spring 2017. We only use down that is a byproduct of the poultry industry and we only purchase down and fur from suppliers who adhere to our stringent standards regarding fair practices and humane treatment of animals.
On June 19, 2018, the United States Federal Trade Commission opened an investigation on GOOS for its advertising practices for possibly making false or misleading representations about the treatment of geese whose down is used in GOOS’ apparel. On or about October 19, 2018, GOOS did alter its advertising language:
We are committed to the ethical sourcing and responsible use of animal products. We have comprehensive traceability standards for fur and down which reflect our commitment to the responsible use of these materials. Our suppliers are required to verify that our down comes as a by-product of poultry industry and has not come from force-fed or live-plucked birds and mandates that all fur is sourced in accordance with the Agreement on International Humane Trapping Standards or Best Management Practices.
On August 1, 2019, the New York Post released an article entitled “Canada Goose pulls claims about its ‘ethical’ treatment of animals”. Upon the release of these public corrective statements, the price of GOOS’ common shares listed on the TSX dropped from $61.81 to $56.70 per share.
The shares purchased during the Class Period will be included within the putative Class Action.
Claim or Motion for Authorization issued: January 7, 2020
Class Period: March 15, 2017, to and including August 1, 2019
Motion Record in Support for Statutory Claim Filed:The hearing of the motion for leave to proceed under the Securities Act of Ontario is scheduled for February 22-24, 2021.
Shareholders’ Canadian Counsel: Andrew Morganti and Sajjad Nematollahi, Morganti & Co. (Toronto) and Charles O’Brien (Montreal)
Corporate Defendants’ Canadian Counsel: Peter Howard and Eliot Kohlers, Stikeman Elliott LLP
Corporate Defendants’ U.S. Counsel: Martin Jonathan Crisp, Ropes & Grey LLP