L Brands, Inc.

On November 19, 2018, the Company reduced its annual ordinary dividend from $2.40 to $1.20 to deleverage the balance sheet over time.

On this news, shares of L Brands fell $6.12 per share, or nearly 18%, to close at $28.43 per share on November 20, 2018, thereby injuring investors.

The complaint filed in this class action 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, Defendants failed to disclose to investors: (1) that the Victoria’s Secret and PINK businesses were having a material adverse effect on the Company’s cash flow, liquidity and debt levels; (2) that Defendants lacked a reasonable basis for their positive statements about the ability of the Company to sustain its dividend; (3) that the MD&A disclosures in filings L Brands made with the SEC were materially false and misleading; (4) that the risk factor disclosures in filings L Brands made with the SEC were materially false and misleading; (5) that the representations about L Brands’ disclosure controls in filings the Company made with the SEC were materially false and misleading; (6) that the certifications issued by the Chief Executive Officer and the Chief Financial Officer on L Brands disclosure controls were materially false and misleading; and (7) that based on the foregoing, Defendants lacked a reasonable basis for their positive statements about L Brands’ then-current business operations and future financial prospects.