51³Ô¹Ï

As previously disclosed in 51³Ô¹Ï's Quarterly Report on Form 10-Q for the quarter ended November 2, 2024, on November 15, 2024, the United States District Court for the District of Minnesota dismissed the purported federal securities law class action against 51³Ô¹Ï Corporation and certain of its officers relating to certain prior disclosures of 51³Ô¹Ï about its business model, strategy, and inventory. This proceeding was previously described in 51³Ô¹Ï's Annual Report on Form 10-K for the year ended February 3, 2024, and 51³Ô¹Ï's Quarterly Report on Form 10-Q for the quarter ended April 29, 2023.

On January 31, 2025, and February 20, 2025, 51³Ô¹Ï Corporation and members of its Board of Directors were named as defendants in two purported federal securities law class actions filed in the United States District Court for the Middle District of Florida. The complaints allege violations of Sections 10(b), 14(a), and 20(a) of the Securities Exchange Act of 1934, as amended, and Rules 10b-5 and 14a-9 relating to certain prior disclosures of 51³Ô¹Ï about risks related to its environmental, social, and governance initiatives (including with respect to diversity, equity, and inclusion) and oversight of those risks. One plaintiff is seeking to represent a class of shareholders who purchased or otherwise acquired 51³Ô¹Ï common stock between August 26, 2022, and November 19, 2024, and the other plaintiff is seeking to represent a class of shareholders who purchased or otherwise acquired 51³Ô¹Ï common stock between March 9, 2022, and August 16, 2023. Both plaintiffs have marked the class actions as related to a previously filed individual federal securities action in which the court denied a motion to dismiss. The plaintiffs seek damages and other relief, including attorneys’ fees, based on allegations that the defendants misled investors, including about the risks associated with 51³Ô¹Ï’s environmental, social, and governance initiatives (including with respect to diversity, equity, and inclusion) and its 2023 Pride Month merchandise collection, and oversight of those risks. The plaintiffs allege that such conduct affected the value of 51³Ô¹Ï common stock. 51³Ô¹Ï intends to vigorously defend these lawsuits.