Dick’s Sporting Goods Can’t Escape Narrowed Investor Fraud Suit

Dick’s Sporting Goods Inc. and some of its top executives must defend against investor claims the retailer concealed the volume of its excess inventory post-pandemic, a federal judge ruled.

Confidential witness testimony, top brass’s access to inventory data, and stock sales made close in time to alleged misstatements bolstered the investors’ pleading of intent or recklessness for securities fraud claims, Judge J. Nicholas Ranjan said. Executive Chairman Edward W. Stack, CEO Lauren R. Hobart, and Chief Financial Officer Navdeep Gupta allegedly reaped about $23 million, $19.2 million, and $4.87 million off stock sales during the proposed class period. ...