The inquiry centers on allegations that the company provided inaccurate disclosures concerning the integration of Foot Locker. Specifically, attorneys are investigating whether management failed to adequately warn investors about mounting risks, including cooling demand for footwear and the necessity for aggressive price discounting to clear warehouse backlogs. These inventory pressures were highlighted on August 24, 2026, when the company reported a significant contraction in annual profit expectations.

The resulting market reaction on August 25 wiped out nearly a third of the company's valuation in a single session. Bleichmar Fonti & Auld LLP is currently evaluating potential legal recourse for investors who suffered losses during this period. The firm, which has previously secured major settlements against companies like Tesla and Teva Pharmaceutical, is operating on a contingency basis, meaning no out-of-pocket costs are required for participating shareholders.