SOURCE: Saxena White P.A.

November 04, 2013 17:12 ET

Saxena White P.A. Files Securities Fraud Class Action Against Francesca's Holdings Corporation

BOCA RATON, FL--(Marketwired - Nov 4, 2013) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Southern District of New York against Francesca's Holdings Corporation ("FRAN" or the "Company") (NASDAQ: FRAN) and certain of the Company's executive officers and/or directors and underwriters. The class action is filed on behalf of investors who purchased or otherwise acquired FRAN's common stock between January 10, 2012 and September 3, 2013 (the "Class Period"). The complaint brings forth claims for violations of the Securities Exchange Act of 1934. 

In addition, the class action complaint is also filed on behalf of investors who purchased FRAN's common stock pursuant or traceable to the Company's Registration Statement and Prospectus ("Offering Documents") issued in connection with FRAN's secondary public offerings during the Class Period. The complaint brings forth claims for violations of the Securities Act of 1933.

FRAN operates as a holding company. Through its subsidiary, the Company retails women's apparel, jewelry, accessories and gift products that cater to 18-35 year-old fashion conscious customers. The complaint alleges that, throughout the Class Period and in FRAN's Offering Documents, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about FRAN's business and financial condition. 

Specifically, Defendants made false and/or misleading statements and/or failed to disclose to FRAN investors that: (i) FRAN's disclosures regarding its margins, same store sales and related positive earnings were false and misleading and unsustainable; (ii) the Company's same-store sales growth was being negatively impacted by weather and a competitive retail environment; (iii) FRAN dramatically increased promotional activity to meet financial targets; (iv) FRAN concealed the Company's sales terms and margins with its largest suppliers, which included companies owned by family members of FRAN's founding management; and (vi) as a result, the Company's financial statements were deficient and misleading at all relevant times.

As a result of Defendants' false and/or misleading statements, FRAN shares traded at inflated prices during the Class Period. However, after disclosure of Defendant's false and/or misleading statements, FRAN shares suffered a precipitous decline in the market value, thereby causing significant losses and damages to Plaintiff and other Class members. You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com

If you purchased FRAN stock between January 10, 2012 and September 3, 2013, inclusive, and/or pursuant to one of the Company's secondary public offerings during the Class Period, you may contact Lester Hooker (lhooker@saxenawhite.com) at Saxena White P.A. to discuss your rights and interests.

If you purchased FRAN common stock during the Class Period of January 10, 2012 through September 3, 2013, and/or pursuant to one of the Company's secondary public offerings, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than November 26, 2013. You may contact Saxena White P.A. to discuss your rights regarding lead plaintiff appointment and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.

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