Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against The Talbots, Inc.
February 03 2011 - 6:08PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/talbots/) today announced that a
class action has been commenced on behalf of an institutional
investor in the United States District Court for the District of
Massachusetts on behalf of purchasers of the common stock of The
Talbots, Inc. (“Talbots” or the “Company”) (NYSE:TLB) between
December 8, 2009 and January 11, 2011, inclusive (the “Class
Period”), seeking to pursue remedies under the Securities Exchange
Act of 1934 (the “Exchange Act”).
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, David J. George
of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at
djr@rgrdlaw.com. 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/talbots/. 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 Talbots and certain of its officers and
executives with violations of the Exchange Act. Talbots is a
specialty retailer and direct marketer of women’s apparel,
accessories and shoes that operates stores in the United States and
Canada.
The complaint alleges that, throughout the Class Period,
defendants failed to disclose material adverse facts about the
Company’s true financial condition, business and prospects.
Specifically, the complaint alleges that: (i) notwithstanding
defendants’ mantra about the Company being a great turnaround
story, demand for the Company’s full-price inventory was extremely
soft, which had resulted in the Company becoming saddled with
excess inventory that could not be sold at full price; (ii) the
Company 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; and (iii) as a
result of (i) and (ii) above, defendants knew that the profit and
revenue numbers that they forecast to the market were illusory and
unattainable.
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%. As a result of this news, the price of Talbots
common stock dropped 17.4%, from a closing price $7.57 on January
10, 2011 to close at $6.25 on January 11, 2011, on almost six times
the stock’s average daily trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers
of the common stock of Talbots 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, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Robbins Geller Web site (http://www.rgrdlaw.com)
has more information about the firm.
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