The complaint, filed in the United States District Court for the Western District of Pennsylvania, names Executive Chairman Edward W. Stack, CEO Lauren R. Hobart, and CFO Navdeep Gupta as individual defendants. Investors who purchased DKS common stock between September 8, 2025, and August 24, 2026, allege that these officers provided false assurances that Foot Locker’s promotional and inventory challenges had been effectively resolved.

Legal counsel for the plaintiffs, Levi & Korsinsky, LLP, argues that the executives leveraged their oversight of quarterly reports and public disclosures to mask the true state of the $2.5 billion acquisition. The suit invokes Section 20(a) of the Securities Exchange Act, seeking to hold the officers personally liable for the losses incurred when shares plummeted $55.02 on August 25, 2026. Shareholders seeking to participate as lead plaintiffs in the case have until November 3, 2026, to apply.