NEW YORK, Sept. 9, 2016 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against Signet
Jewelers Ltd. ("Signet" or the "Company") (NYSE: SIG) and
certain of its officers. The class action, filed in
United States District Court, Southern District of New York, and docketed under 16-cv-06861,
is on behalf of a class consisting of all persons or entities
who purchased or otherwise acquired Signet securities between
January 7, 2016 and June 3, 2016 both dates inclusive (the "Class
Period"). This class action seeks to recover damages against
Defendants for alleged violations of the federal securities laws
under the Securities Exchange Act of 1934 (the "Exchange
Act").
If you are a shareholder who purchased Signet securities during
the Class Period, you have until October 24,
2016 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
Signet purports to be the world's largest retailer of diamond
jewelry. The Company claims to operate thousands of stores in
North America, and some in the
United Kingdom, through well-known
brand names such as "Kay," "Jared," "Zales," and "Peoples
Jewelers."
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose that: (i) the Company was
experiencing difficulty ensuring the safety of customer's jewelry
while in the custody of Signet's brands; (ii) employees at stores
under at least one of Signet's brands (Kay) were swapping
customers' stones for less valuable stones; (iii) the Company was
experiencing a drop-off in customer confidence; (iv) the Company
was facing increasing competitive pressures; (v) as result of the
foregoing, the Company's financial performance was being negatively
impacted; and (vi) as a result of the foregoing, Defendants'
positive statements about Signet's business, operations, and
prospects, were false and misleading and/or lacked a reasonable
basis.
On May 25, 2016, BuzzFeed
News reported on the seemingly wide-spread occurrences of
diamond swapping in connection with the Company's Kay stores. The
news report recounted the stories of multiple Kay customers whose
diamonds were swapped out for considerably less expensive stones
while the customers' jewelry was in the custody of Kay, typically
for repair.
On May 26, 2016, the Company
issued a press release announcing its first quarter fiscal year
2017 financial results. Therein, the Company disclosed that its
same store sales for the period increased by only 2.4%, falling
below the Company's previously issued first quarter 2017 guidance
of 3% to 4%. The Company also disclosed that it was lowering its
fiscal year 2017 same store sales growth guidance from 3.0% – 4.5%
down to 2.0% – 3.5%.
On this news, Signet's stock price fell $11.37 per share, or 10.5%, to close at
$97.00 per share on May 26, 2016, on unusually heavy trading
volume.
On June 3, 2016, the Company
issued a press release entitled "Signet Jewelers Issues Statement
Regarding Its Longstanding Commitment to Superior Customer Service
and Rigorous Product Quality Procedures." Therein, the Company
appeared to confirm the occurrence of instances of "diamond
swapping" at the Company's stores, though it denied that this was
"systematic."
On this news, Signet's stock price fell $4.04 per share, or 4.3%, to close at
$88.19 per share on June 3, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP