CROX Crocs Inc

RADNOR, Pa., Nov. 27 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Colorado on behalf of all purchasers of securities of Crocs Inc. (NASDAQ:CROX) ("Crocs" or the "Company") from July 27, 2007 through October 31, 2007, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint charges Crocs and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Crocs is a designer, manufacturer and marketer of footwear for men, women and children under the "crocs" brand. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was experiencing significant product distribution problems in Europe and Asia; (2) that these distribution problems were causing the Company to be unable to capitalize on tens of millions of dollars in sales of its products due to their seasonal nature and changing weather conditions in certain markets; (3) as a result, the Company's inventory levels were significantly increasing due to such distribution problems and seasonal product sales; and (4) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made. On October 31, 2007, the Company shocked investors when it announced disappointing third quarter earnings. Following this announcement, the Company held a conference call where it disclosed that it had experienced a significant slowdown in sales during the quarter. The Company admitted that it had missed sales opportunities in Europe and Asia due to an inability to fulfill orders, and that it had "only shipped about 50% of the orders" in these markets. As a result of distribution problems, the Company was unable to capitalize on over $20 million of sales in Europe, as well as on an additional $10 to $15 million of sales in Asia. Further, the Company disclosed that its sales were being negatively impacted as the weather turned colder throughout Europe and Asia. These distribution problems were particularly devastating for the Company's sales during the quarter as its products are subject to seasonal variations and are significantly impacted by weather conditions, and because over 75 percent of the Company's revenues during a quarter are attributable to its fair-weather footwear. As a result of the distribution problems, the Company's inventories increased to $195.3 million for the quarter, as compared to $49.1 million for the prior year's quarter. Most of the increased inventory position for the quarter was as a result of the Company's problems in Europe and Asia, where it admittedly "struggle[d] to keep up with their torrid growth and orders early in the quarter." On this news, the Company's shares fell $27.01 per share, or over 36 percent, to close on November 1, 2007 at $47.74 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ If you are a member of the class described above, you may, not later than January 7, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported 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. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., both of Schiffrin Barroway Topaz & Kessler, LLP, +1-1-888-299-7706, +1-1-610-667-7706, Web site: http://www.sbtklaw.com/

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