Johnson Fistel Investigates Claims on Behalf of DICK'S Sporting Goods Shareholders as Securities Fraud Class Action Partially Survives Motion to Dismiss

Core Viewpoint - Johnson Fistel is investigating potential claims on behalf of DICK'S Sporting Goods shareholders regarding alleged breaches of fiduciary duties by certain officers and directors, as a securities fraud class action partially survives a motion to dismiss [2][3] Summary by Relevant Sections Legal Proceedings - On August 12, 2025, a court partially denied DICK'S motion to dismiss a securities fraud lawsuit, allowing claims that executives misled investors about inventory levels to proceed [3] - The lawsuit alleges that during the class period, executives issued materially false and misleading statements and failed to disclose critical information regarding inventory and demand [3] Allegations Against Executives - The complaint claims that demand for products in DICK'S outdoor segment was slowing faster than represented, leading to excess inventory [3] - It is alleged that the "structural changes" touted by executives, such as differentiated products and improved pricing technology, did not effectively manage excess inventory without negatively impacting profitability [3] - The need to liquidate excess inventory, particularly in the outdoor segment, is said to have a materially negative effect on the company's profitability [3] - As a result of these issues, executives' statements about the company's business condition and prospects were materially false and misleading [3]