Capri (US:CPRI) Prnewswireยท2025-01-21 23:45Core Viewpoint - Capri Holdings Limited is under investigation for potential securities fraud and unlawful business practices following its merger agreement with Tapestry, Inc. [1] Group 1: Merger Agreement - On August 10, 2023, Capri and Tapestry announced a merger agreement where Tapestry would acquire Capri for $57 per share in cash [2]. Group 2: Regulatory Scrutiny - On November 6, 2023, both companies received a request for additional information from the Federal Trade Commission (FTC) regarding the antitrust review of the Capri Acquisition, leading to a decline in Capri's stock price from $50.66 to $48.82 per share [3]. - In mid-April 2024, FTC Bureau of Competition Director Henry Liu's comments raised investor concerns about the Capri Acquisition being a potential enforcement target [4]. - Following these comments, Capri's stock price fell from $44.03 to $39.31 per share [5]. Group 3: Legal Actions - On April 17, 2024, reports indicated that the FTC was preparing to sue to block the Capri Acquisition, causing the stock price to drop from $38.93 to $37.87 per share [5]. - On April 22, 2024, the FTC filed a lawsuit to block the acquisition, claiming it would eliminate competition in the accessible luxury handbag market, resulting in a decline in Capri's stock price from $37.96 to $34.81 per share [6]. - On October 24, 2024, a federal judge granted the FTC's motion to preliminarily enjoin the Capri Acquisition, leading to a significant drop in Capri's stock price from $41.60 to $21.26 per share, nearly a 50% decline [7].