ATLANTA, June 9, 2003 (PRIMEZONE) -- Chitwood & Harley LLP announces that a class action lawsuit is pending in the United States District Court for the District of Massachusettes, against J. Jill Group, Inc., ("J. Jill Group" or the "Company"), (Nasdaq:JILL) and certain of its officers and directors. The suit was filed on behalf of purchasers of the securities of J. Jill Group between February 12, 2002 and December 4, 2002, inclusive ("Class Period"). A complaint is available from the Court or can be provided upon request.
If you would like to discuss this action or have any questions concerning this notice or your rights with respect to this matter, please contact Jennifer Morris by email at jlm@classlaw.com , through our website, www.classlaw.com or by calling 1-888-873-3999.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 12, 2002 and December 4, 2002, thereby artificially inflating the price of J. Jill Group securities. The Complaint alleges that defendants issued a series of materially false and misleading statements concerning the Company's operations and financial results. In particular, the Complaint alleges that defendants' statements were materially false and misleading because defendants failed to disclose and misrepresented: (a) that the Company's same-store sales growth -- an operating metric that is important to investors in retailing stocks -- was declining during the Class Period as demand for the Company's products weakened; (b) that the Company was amassing a material amount of product that was of diminishing value and would have to be discounted in promotional campaigns, thereby causing the Company to experience declining financial results; (c) that the Company was not collecting taxes in certain States where it made Internet sales and also had a retail store. As a result, the Company was exposed to the heightened risk that it would be subject to regulatory scrutiny; and (d) as a result of the foregoing, defendants' earnings projections and positive statements about the Company were lacking in a reasonable basis and were therefore materially false and misleading.
On December 5, 2002, prior to the open of the market, J. Jill Group shocked the market by announcing that it was revising its earnings for the fourth quarter of 2002. The Company reported that it expected fourth quarter diluted earnings per share to range between $0.25 and $0.30. In response to this announcement, the price of J. Jill common stock declined from $23.01 per share to $16.52 per share, a decline of 28%, on extremely heavy volume. Prior to the end of the Class Period, J. Jill insiders sold more than $17 million of their personally-held stock to the unsuspecting public.
Chitwood & Harley LLP is currently investigating these claims. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino, Esq. or Jennifer Morris at 1-888-873-3999 ext. 6883 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com by clicking on J. Jill Group, Inc. If you would like to serve as lead plaintiff, you must meet certain requirements that we would be happy to discuss with you. The deadline for filing papers is July 14, 2003. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of his or her choice, or may remain an absent class member.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley LLP, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free) ext. 6883, by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca