SOURCE: Brower Piven, A Professional Corporation

November 13, 2009 17:42 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in Zale Corporation to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the January 8, 2010 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - November 13, 2009) - Brower Piven, A Professional Corporation announces 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 ("Zale" or the "Company") (NYSE: ZLC) during the period between November 16, 2006 and October 29, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than January 8, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company 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 the Company's financial results were overstated during the Class Period and not prepared in accordance with Generally Accepted Accounting Principles. According to the complaint, after the Company 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.

If you have suffered a net loss for all transactions in Zale Corporation securities during the Class Period (including shares or possibly calls purchased during, but not sold until after the end of the Class Period or possibly put options sold but not covered until after the end of the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/986-0036
    Email Contact