Key Developments For Zale Corporation
Zale Corporation (ZLC.N) (New York Stock Exchange)
Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against Zale Corporation
Bronstein, Gewirtz & Grossman, LLC announced that a class action has been filed in the United States District Court for the Northern District of Texas on behalf of those who purchased or otherwise acquired stock of Zale Corporation during the period between November 16, 2006 through and including October 29, 2009 (the Class Period). According to the complaint, during the Class period defendants made false and/or misleading statements and failed to disclose, among other things, the following material adverse facts: that instead of recording certain advertising costs as an expense, Zale improperly recorded them as prepaid advertising; that Zale improperly accounted for intercompany accounts receivable associated with its wholly owned insurance subsidiaries; that as a result, Zale's financial results were overstated during the Class Period and were not prepared in accordance with Generally Accepted Accounting Principles; that Zale lacked adequate internal and financial controls; and, that as a result of the foregoing, Zale's financial statements were materially false and misleading at all relevant times. The company filed its Annual Report with the United States Securities and Exchange Commission for the year ended July 31, 2009, containing restated financial information for 2008, 2009 and prior periods, to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes.
Coughlin Stoia Geller Rudman And Robbins LLP Files Class Action Suit Against Zale Corporation
Coughlin Stoia Geller Rudman & Robbins LLP (Coughlin Stoia) announced that a class action has been commenced in the United States District Court for the Northern District of Texas on behalf of purchasers of Zale Corporation publicly traded securities during the period between November 16, 2006 and October 29, 2009, inclusive (Class Period). The complaint charges Zale Corporation and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Zale is a specialty retailer of diamonds and other jewelry products. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company`s turnaround plans, financial results and compliance with Generally Accepted Accounting Principles. Specifically, the Company failed to properly account for its advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes and personal property taxes. As a result of defendants` false and misleading statements, Zale Corporation stock traded at artificially inflated prices during the Class Period, reaching a high of $31.42 per share on December 5, 2006. Plaintiff seeks to recover damages on behalf of all purchasers of Zale Corporation publicly traded securities during the Class Period (Class). The plaintiff is represented by Coughlin Stoia.
Law Offices Of Howard G. Smith Announces Class Action Lawsuit Against Zale Corporation
Law Offices of Howard G. Smith, announced that it is representing investors of Zale Corporation, has filed a class action lawsuit in United States District Court on behalf of a class consisting of all persons or entities who purchased the securities of Zale between November 16, 2006 and October 29, 2009, inclusive. The class action lawsuit was filed in the United States District Court for the Northern District of Texas. The Complaint charges the Company and certain of its executive officers with violations of federal securities laws. Zale is a specialty retailer of fine jewelry in North America. The Complaint alleges that defendants knew or recklessly disregarded that their public statements concerning Zale`s business, operations and prospects were materially false and misleading. Specifically, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: the Company improperly recorded certain advertising costs as prepaid advertising rather than recording the costs as an expense; the Company improperly accounted for intercompany accounts receivable associated with its wholly owned insurance subsidiaries; as a result, the Company's financial results were overstated during the Class Period; the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; the Company lacked adequate internal and financial controls.
Brower Piven Announces Class Action Lawsuit Against Zale Corporation
Brower Piven, A Professional Corporation announced that a class action lawsuit has been commenced in the United States District Court for the Northern District of Texas on behalf of purchasers of the securities of Zale Corporation during the period between November 16, 2006 and October 29, 2009, inclusive. The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of Zale's failure to disclose during the Class Period that Zale's improperly recorded certain advertising costs as prepaid advertising rather than recording the cost as an expense; improperly accounted for intercompany accounts receivable associated with its wholly owned insurance subsidiaries; and lacked adequate internal and financial controls, such that Zale's financial results were overstated during the Class Period and not prepared in accordance with GAAP. According to the complaint, after Zale's filed its Annual Report with the United States Securities and Exchange Commission on October 29, 2009 for the fiscal year ended July 31, 2009, containing restated financial information for fiscal 2008, 2009, and prior periods, to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes and that the SEC is investigating the accounting issues that led the Company to restate its earnings for 2008 and 2009, Zale's stock declined significantly.
Izard Nobel LLP Announces Class Action Lawsuit Against Zale Corporation
The law firm of Izard Nobel LLP announced that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Texas on behalf of those who purchased the securities of Zale Corporation between November 16, 2006 and October 29, 2009 (the class period). The complaint charges that Zale and certain of the Company's officers and directors violated federal securities laws. Specifically, the defendants failed to disclose the following facts: (i) Zale improperly recorded certain advertising costs as prepaid advertising rather than as an expense; (ii) Zale improperly accounted for intercompany accounts receivable associated with its wholly owned insurance subsidiaries; (iii) Zale's financial results were overstated during the Class Period; and (iv) the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles.
