SOURCE: Izard Nobel LLP

February 04, 2011 16:09 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Talbots, Inc.

WEST HARTFORD, CT--(Marketwire - February 4, 2011) - 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 District of Massachusetts on behalf of purchasers of the common stock of Talbots, Inc. ("Talbots" or the "Company") (NYSE: TLB) between December 8, 2009 and January 11, 2011, inclusive (the "Class Period"). 

The Complaint charges Talbots and certain of its officers and directors violated federal securities laws by failing to disclose material adverse facts about the Company's financial condition. Specifically, the Complaint alleges that: (i) notwithstanding defendants' mantra about the Company being a great turnaround story, demand for Talbots' full-price inventory was extremely soft, which had resulted in Talbots becoming saddled with excess inventory that could not be sold at full price; and (ii) Talbots could not keep pace with its competitors without turning to the dramatic and widespread promotional pricing that defendants had stated the Company would not have to resort to.

On January 11, 2011, Talbots provided a Business Update and reported that quarter-to-date top line sales were down approximately 7% versus the fourth quarter of the prior year and the Company's previously announced expectation for fourth quarter top-line sales in the range of flat to down low-single digits. Additionally, quarter-to-date comparable store sales were down approximately 6%. On this news, Talbots' common stock dropped 17.4% to close at $6.25.

If you are a member of the class, you may, no later than April 4, 2011, 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: www.izardnobel.com/talbots/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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