Shareholders have filed at least five federal lawsuits against Tommy Hilfiger Corp. after the company said last week that its Tommy Hilfiger U.S.A. subsidiary is the target of a criminal investigation by U.S. prosecutors in Manhattan.
The lawsuits in Manhattan federal court seek class-action status and also cite certain current and former executives of the firm.
Shares of Tommy Hilfiger Corp. have plunged in New York Stock Exchange trading since the inquiry was disclosed last Friday, and several Wall Street analysts downgraded the stock, saying that unknown details and uncertainty about the probe will likely cloud the firm’s future.
Tommy Hilfiger U.S.A. said in a statement last Friday that it had received a grand jury subpoena for documents relating to the commission rate it paid to a non-U.S. subsidiary.
Investigators are seeking documents dating to 1990, and the company is cooperating, the statement said. In addition, some current and several former employees also received subpoenas.
Please check Friday’s edition of WWD for a full report.