WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Kate Spade and Company (“KATE” or the “Company”) in connection with the proposed acquisition of the Company by Coach, Inc. (“Coach”).  Under the terms of the agreement, the Company’s shareholders will receive $18.50 in cash for each KATE share they own.

WeissLaw is investigating whether KATE’s Board acted to maximize shareholder value prior to entering into the agreement.  Notably, the per-share consideration offers virtually no premium over KATE’s May 5 closing price of $16.97, is well below the Company’s recent trading high of $24.24, and is nearly $8.00 lower than the analyst target price of $26.00 per share.  Additionally, the deal is a strategic transaction which Coach believes will diversify its portfolio, expand its customer base, and strengthen its millennial customer segment, which Coach hopes to successfully capitalize on KATE’s brand loyalty with millennials to improve its market positions in three key opportunity spaces:

  1. The Handbag and Accessories space, which offers Coach a $42 billion opportunity;
  2. The Footwear space at $28 billion; and
  3. The Outerwear space at $11 billion.

Finally, upon closing, Coach anticipates the acquisition to yield double-digit accretion by fiscal year 2019, and $50 million in synergies within three years of deal closing.

Given these facts, WeissLaw is investigating whether KATE’s Board acted in the best interests of KATE’s public shareholders to maximize shareholder value prior to entering into the agreement.  If you own KATE shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/kate-spade-and-company/