Legislative, Regulatory & Legal

A recent string of media reports has focused on major retailers that track customers who return merchandise. While the plaintiffs’ bar and the media are seeking to transform return monitoring into a headline-grabbing consumer privacy issue, the practice is hardly new, it is certainly justified as an anti-fraud measure and any litigation or compliance risk should be mitigated by appropriate disclosures.

Washington, D.C. – The National Retail Federation (NRF) expects holiday sales to increase 3.9% to $602.1 billion, up slightly from last year’s 3.5% increase. The forecast is higher than the 10-year average holiday sales growth of 3.3%.

The group noted, however, that its forecast hinges “on Congress and the Administration's actions" over the next 45 days as the government shutdown entered a third day

Harris Teeter’s shareholders voted to approve the previously announced merger agreement among Harris Teeter, Hornet Acquisition and Kroger.

Approximately 98.6% of the votes cast were in favor of the agreement, representing approximately 82.5% of Harris Teeter’s outstanding common stock as of Aug. 22.

Plano, Texas – J.C. Penney Company shareholder Alan Marcus is suing the troubled department store chain because of its recent decision to build equity by issuing more than $800 million worth of new stock, which sent share values plunging, Reuters reported.    

The report said Marcus, who bought 300 shares of Penney stock on Sept. 26 shortly before the new stock was announced, is trying to obtain class-action status for his suit.
     

New York – At least three law firms and a settlement claims filing service have filed class action suits  on behalf of purchasers of Francesca's Holdings Corporation common stock during the period between March 20, 2013 and September 3, 2013. Suits filed by law firms Morgan & Morgan, Federman & Sherman, and Ryan and Maniskas, LLP, as well as by The Shareholders Foundation, Inc., in the District Court for the Southern District of New York allege violations of federal securities laws in regard to poor second quarter financial results released on Sept.

New York – At least four law firms have launched investigations of Lumber Liquidators Holdings, Inc. following a raid by federal agencies on Lumber Liquidators’ Virginia offices in connection with the importation of certain wood-flooring products. The law firms of Pomerantz Grossman Hufford Dahlstrom & Gross LLP, Bronstein, Gewirtz & Grossman, LLC, The Shuman Law Firm, and Wohl & Fruchter LLP are all investigating whether Lumber Liquidators has committed federal securities violations.

Washington, D.C. – The National Retail Federation welcomed a new study that shows retailers have passed along the majority of the savings from debit card swipe fee reform to their customers, and that the resulting increase in consumer spending has boosted job creation across the country.

But the study also shows that benefits for consumers and the economy could have been much larger if the Federal Reserve had set its cap on debit swipe fees lower as directed by Congress.

By Jim Hogan, [email protected]