The Law Office of Robbins Umeda LLP Announces an Investigation of The Talbots Inc.
February 04 2011 - 1:19PM
Business Wire
Robbins Umeda LLP, a shareholder rights litigation firm, has
commenced an investigation into possible breaches of fiduciary duty
and other violations of the law by certain officers and directors
at The Talbots Inc. (NYSE:TLB). Talbots, along with its
subsidiaries, operates as a specialty retailer and direct marketer
of women's apparel, accessories, and shoes in the United States and
Canada. The company was founded in 1947 and is headquartered in
Hingham, Massachusetts.
Robbins Umeda LLP's investigation concerns whether Talbots's
officers and directors caused the company to issue materially false
and misleading statements regarding the company's business and
financial results. Specifically, the investigation concerns whether
these fiduciaries improperly touted the company's rise to
profitability and caused the company's stock to trade at
artificially inflated prices.
On April 13, 2010, the officers and directors at Talbots
released upbeat financial news that the adjusted fourth quarter
income from continuing operations had increased to $7.4 million,
compared to the prior year's adjusted loss from continuing
operations of $123.4 million. Throughout the remainder of 2010,
Talbots continued to release statements regarding the company's
positive performance compared to years past. However, on December
7, 2010, Talbots's abruptly reported that net sales for the third
quarter of 2010 decreased 3.2%, that the company's comparable store
sales were down 7.1%, and an 11.3% increase in total inventory.
Upon this news, Talbots's market value dropped 22.6%. Furthermore,
on January 11, 2011, Talbots provided a Business Update which
disclosed the company's expected full year adjusted earnings per
share to be in the range of $0.56-$0.69 per share, a departure from
its previously announced range of $0.70-$0.89 per share. The
company's value dropped another 17.4%, following this news.
If you own stock in Talbots and would like more information
about your rights as a shareholder, please contact attorney Gregory
E. Del Gaizo at 800-350-6003 or by e-mail at
info@robbinsumeda.com.
Robbins Umeda LLP represents individual and institutional
shareholders in derivative, direct, and class action lawsuits. The
law firm's skilled litigation teams include former federal
prosecutors, former defense counsel from top multinational
corporate law firms, and career shareholder rights attorneys. For
more information, please go to http://www.robbinsumeda.com.
Attorney Advertising.
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