|[September 27, 2013]
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Francesca's Holdings Corporation
NEW YORK --(Business Wire)--
Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/francescas/)
today announced that a class action has been commenced in the United
States District Court for the Southern District of New York on behalf of
purchasers of Francesca's Holdings Corporation ("Francesca's" )
(NASDAQ:FRAN) common stock during the period between March 20, 2013 and
September 3, 2013 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff's counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at firstname.lastname@example.org. If
you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/francescas/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Francesca's and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Francesca's operates a chain of 429 retail boutiques and a retail
website offering fashion apparel, jewelry, accessories, and gifts.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company's
financial performance and future prospects. Specifically, the complaint
alleges that during the Class Period, defendants failed to disclose the
following adverse facts: (i) that unseasonably rainy and cold spring and
summer weather had diminished the mall traffic Francesca's relied upon
to drive same-store sales growth; (ii) that a competitive back-to-school
retail environment weighed on same-store sales growth; (iii) that
same-store sales were declining, forcing Francesca's to rely upon new
store openings to increase sales; (iv) that Francesca's had been forced
to engage in promotional selling at significant discounts during its
first quarter 2013 in order to meet its financial targets; (v) that
Francesca's had been forced to increase promotional activity during the
second quarter of 2013; (vi) that Francesca's concealed the impact sales
terms and margins with its suppliers would have on its ability to
maintain above-average profit margins; and (vii) that, as a result, the
Company was not on track to achieve the financial results defendants had
led the market to expect during the Class Period. As a result of
defendants' false and misleading statements during the Class Period,
certain company insiders were able to sell hundreds of millions of
dollars of Francesca's stock at artificially inflated prices.
On September 4, 2013, the Company announced dismal second quarter 2013
financial results and third quarter 2013 guidance. On this news, the
price of Francesca's common stock, which had traded above $32 per share
during the Class Period, plummeted more than 44% from that level to
close at $17.79 per share on September 4, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of
Francesca's common stock during the Class Period (the "Class"). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries and has been ranked number one in the number of shareholder
class action recoveries in MSCI's Top SCAS 50 every year since
2003. Please visit http://www.rgrdlaw.com
for more information.
[ Back To TMCnet.com's Homepage ]