PHILADELPHIA, July 25, 2006 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit was commenced in the United States District Court for the District of Maryland, on behalf of purchasers of the common stock of Jos. A. Bank Clothiers, Inc. ("Jos. A. Banks" or the "Company") (Nasdaq:JOSB) between January 5, 2006 and June 7, 2006, inclusive (the "Class Period").
The action is pending against defendants Jos. A. Bank Clothiers, Inc. and Robert N. Wildrick, President and Chief Executive Officer. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by email at susang@bernardmgross.com.
The Complaint charges Jos. A. Bank Clothiers, Inc. and Robert N. Wildrick with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by issuing a series of materially false and misleading statements to the market during the Class Period concerning the Company's inventories and their impact on the Company's business and finances. Specifically, the complaint alleges that the Company failed to disclose the following:
(a) the Company had overinvested in inventories of fall clothing, building excessive levels of in-stock inventories of seasonal merchandise, in light of demand, that carried over into the first quarter of 2006;
(b) these inventories were at such excessive levels that the Company resorted to very aggressive promotional pricing in February and March 2006 which deeply discounted the prices of the merchandise, discounts significantly greater than the Company's historical practice, in order to move the merchandise and make room for new season merchandise within the financial constraints in which the Company operated and financed its inventories and new store openings;
(c) the Company's gross profit margins were substantially reduced in February and March 2006 by reason of the inventory and pricing actions taken by defendants which caused the Company's profit margins and profits in February and March 2006 to shrink dramatically even as sales revenues increased, which represented an extreme departure from Jos. A. Bank's historical pattern; and
(d) Defendant Wildrick, while he was touting the current and future operational and financial strengths of Jos. A. Bank and the 52% appreciation in the Company's stock price in 2005 on the NASDAQ was selling large blocks of his personal stock.
Then, on June 8, 2006, defendants dropped a bombshell announcing that the Company's net income for the first quarter of 2006 had fallen 13% even as sales revenues increased 18%. The market was stunned by defendants' belated disclosures. The Company's common stock fell 29%, dropping $10.72 to close at $26.40 per share on June 8, 2006.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased the stock of Jos. A. Bank Clothiers, Inc. (Nasdaq:JOSB) during the period January 5, 2006 and June 7, 2006, you may no later than September 25, 2006, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
Please Contact: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
The Wanamaker Bldg
100 Penn Sq. East, Suite 450
Philadelphia, PA 19103
Telephone: 866-561-3600 (toll free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.