Contact Information: Contact: Peretz Bronstein or Eitan Kimelman Bronstein, Gewirtz & Grossman, LLC 212-697-6484
Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against Zale Corporation
| Source: Bronstein, Gewirtz & Grossman, LLC
NEW YORK, NY--(Marketwire - November 25, 2009) - Bronstein, Gewirtz & Grossman, LLC announces
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 ("Zale" or the "Company")
(NYSE : ZLC ) 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: (i) that instead of recording certain
advertising costs as an expense, Zale improperly recorded them as prepaid
advertising; (ii) that Zale improperly accounted for intercompany accounts
receivable associated with its wholly owned insurance subsidiaries; (iii)
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; (iv) that Zale lacked adequate internal and
financial controls; and, (v) 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 (the "SEC") 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. Zale also disclosed that the SEC was
investigating the accounting issues that led it to restate its earnings for
2008 and 2009. The price of Zale's shares fell almost 26% on this news.
No Class has yet been certified in the above action. If you wish to review
a copy of the Complaint, to discuss this action, or have any questions,
please contact either Peretz Bronstein or Eitan Kimelman of Bronstein,
Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com.
Those who inquire by e-mail are encouraged to include their mailing address
and telephone number. January 7, 2010 is the deadline for investors to seek
a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our
primary expertise is the aggressive pursuit of litigation claims on behalf
of our clients. In addition to representing institutions and other
investor plaintiffs in class action security litigation, the firm's
expertise includes general corporate work, private securities offerings,
and securities arbitration.