SOURCE: Izard Nobel LLP

November 11, 2009 17:05 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Zale Corporation

WEST HARTFORD, CT--(Marketwire - November 11, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces 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 ("Zale" or the "Company") (NYSE: ZLC) 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.

On October 29, 2009, Zale filed its Annual Report with 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. Therein, Zale further disclosed that the SEC is investigating the accounting issues that led to the 2008 and 2009 restatements. On this news, Zale fell nearly 26%, to $4.73 per share on October 30, 2009.

If you are a member of the class, you may, no later than January 8, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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