A securities class action has been filed against Lakeland Industries, Inc. (LAKE) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lakeland securities between December 1, 2023 through December 9, 2025. This case has been filed in the USDC – SDNY.
Lakeland, together with its subsidiaries, manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. The Company employs a so-called “small, strategic, and quick” (“SSQ”) mergers and acquisitions (“M&A”) strategy to purportedly drive its growth in revenue and profitability.
At the end of November 2023, Lakeland announced its acquisition of New Zealand-based Pacific Helmets NZ Limited (“Pacific Helmets”), a purported leading designer and manufacturer of helmets for the firefighting, wildland firefighting, and rescue markets. Defendants touted Pacific Helmets’ purported “premium solutions” and said that the Company’s acquisition of it enhanced Lakeland’s product portfolio.
In February 2024, Lakeland announced its acquisition of the related companies Jolly Scarpe S.p.A. (based in Italy) and Jolly Scarpe Romania S.R.L. (collectively, “Jolly”), a purported leading designer and manufacturer of professional footwear for the firefighting, military, police, and rescue markets. Defendants touted this acquisition as another significant milestone in Lakeland’s expansion efforts, as well as Jolly’s purported strong brand with a well-established reputation for quality and innovative design and manufacturing.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding Lakeland’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Lakeland was experiencing significant, sustained issues with its Pacific Helmets and Jolly businesses, including, inter alia, shipping-related delays, production issues, and slower than expected rollout of new products; (ii) accordingly, Defendants overstated the anticipated and actual positive impact of these businesses on Lakeland’s financial results, as well as the overall strength and quality of Pacific Helmets’ and Jolly’s respective operations; (iii) Lakeland’s business and financial results were significantly deteriorating because of, inter alia, tariff-related headwinds and timing, certification delays, and material flow issues in its acquired businesses; (iv) accordingly, Defendants overstated the strength of their tariff mitigation measures and SSQ M&A strategy; (v) as a result of all the foregoing issues, Defendants’ financial guidance was unreliable; and (vi) as a result, Defendants’ public statements were materially false and misleading at all relevant times.