Ascena Bankruptcy Plan Blasted for Gutting Shareholders’ Claims

Ascena Retail Group Inc.‘s bankruptcy plan drew fire from a group of shareholders who say it would force them to give up pending legal claims over the company’s collapse without providing anything in return.

The shareholders, who objected to the clothing retailer’s Chapter 11 plan Tuesday, are part of a securities class action against Ascena and two former executives over allegedly false financial statements related to the company’s 2015 acquisition of the Ann Taylor and LOFT fashion brands.

The Securities and Exchange Commission, which also filed an objection Tuesday with the U.S. Bankruptcy Court for the Eastern District of ...