Class Action Sued DICK's Sporting Goods Over Foot Locker Acquisition Missteps
News related to:DICK's Sporting Goods, Inc · 2 min read
Kaplan Fox & Kilsheimer LLP has announced the filing of a class action lawsuit against DICK's Sporting Goods, Inc. (NYSE: DKS) on behalf of investors who purchased the company’s common stock between September 8, 2025, and August 24, 2026. The lawsuit alleges that DICK's Sporting Goods misled investors regarding the success and financial impact of its acquisition of Foot Locker, Inc.
The class action was initiated on September 8, 2025, the first day of the class period, when DICK's Sporting Goods announced the completion of its $2.5 billion acquisition of Foot Locker. The complaint alleges that the company failed to disclose the ongoing challenges Foot Locker faced, particularly with its inventory and promotional strategies, which were alleged to be persistent issues despite claims to the contrary.
On August 25, 2026, DICK's Sporting Goods released its second-quarter 2026 earnings report, revealing disappointing results. The company reported revenue of $1.73 billion from Foot Locker, which fell short of analysts' expectations of $1.81 billion. Additionally, DICK's Sporting Goods reduced its full-year 2026 net sales guidance and disclosed that Foot Locker's comparable sales were expected to decline by 2.0% to 0.0% for the year, down from the company's previous forecast of 1.5% to 3% growth.
The news sent DICK's Sporting Goods' stock price plummeting by $55.02 per share, or 30.68%, to close at $124.31 per share, marking a significant loss for investors who had purchased the stock during the class period.
Kaplan Fox & Kilsheimer LLP, a nationally recognized law firm, is encouraging investors who have incurred losses to contact the firm before November 3, 2026. The firm’s managing partner, Pamela A. Mayer, stated, "We believe that the allegations of misleading statements about the Foot Locker acquisition are well-founded and that investors deserve the opportunity to seek justice for their losses."
The lawsuit alleges that throughout the class period, DICK's Sporting Goods and its executives failed to disclose material information regarding the challenges Foot Locker faced, which significantly affected the company's financial performance and stock price. The complaint argues that the failure to disclose these issues constituted a violation of securities laws.