SOURCE: Shareholders Foundation, Inc.

Shareholders Foundation, Inc.

January 23, 2012 09:35 ET

Carter's, Inc. Investor Lawsuit Against Directors Announced by Shareholders Foundation

SAN DIEGO, CA--(Marketwire - Jan 23, 2012) - The Shareholders Foundation, Inc. announces that a lawsuit by an investor in Carter's (CRI) shares is pending in State Court against certain directors at Carter's, Inc. over alleged breaches of fiduciary duties.

According to the complaint the plaintiff alleges that certain directors caused Carter's, Inc. to publicly issue false financial results by improperly reporting millions of dollars in margin support payment to major wholesale customers in incorrect periods and as a result the defendants caused Carter's to improperly recognize revenue on millions of dollars of product sold via wholesale customers.

The plaintiff claims that defendants artificially inflated Carter's public reported revenues, net income and earnings per shares and as a result for 2007 and 2008, Carter's accounts receivables were materially overstated. The plaintiff says that in response to the allegedly gales and misleading information disseminated by the defendants Carter's stock rose from $15 per share in 2004 to more than $33 per share in 2006. Later, Carter's, Inc. had to restate its historical financial statements for the fiscal years 2004-2008.

The plaintiff alleges that certain defendants profited by selling their personal Carter's shares at prices artificially inflated by Carter's false financial results and certain defendants sold combined over 2.0million shares of CRI shares for proceeds exceeding $56million.

Those who are current long term investors in Carter's (CRI) shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    mail@shareholdersfoundation.com
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108