Dick’s Sporting Goods Leaders Sued Over Post-Pandemic Financials

Dick’s Sporting Goods Inc. executives concealed the retailer was dealing with low post-pandemic demand and theft, exposing the company to litigation and stock plummet losses, a shareholder derivative lawsuit said.

On Aug. 22, 2023, the day Dick’s revealed disappointing second quarter of fiscal year 2023 results attributed mainly to markdowns to push excess product and inventory shrinkage, the stock price plunged more than 24%, “erasing nearly $2.2 billion in market capitalization,” investor Donel Davidson told the US District Court for the Western District of Pennsylvania in a complaint filed Thursday.

Share prices closed at $111.53 that day. The 24% single-day ...