HARTFORD, Conn., Sept. 25, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of The Children's Place Retail Stores, Inc. ("The Children's Place") (Nasdaq:PLCE) between August 3, 2006 to August 23, 2007, inclusive (the "Class Period").
The Complaint charges that The Children's Place and certain of its officers and directors violated federal securities laws. Specifically, defendants issued materially false statements that failed to disclose the following: (i) the Company was experiencing difficulties meeting certain deadlines for the remodeling and maintenance of its Disney stores and Disney was not satisfied with the Company's performance under their agreement; (ii) that, as a result of the Company's performance issues, the Company's exclusive ability to contract, manufacture, source, offer and sell merchandise featuring Disney-branded characters, past, present and future was at risk of being materially altered and/or lost completely; and (iii) as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its prospects and revenue growth.
According to the Complaint, on August 23, 2007, the Company announced its preliminary fiscal 2007 second quarter financial results, the Company's revised earnings guidance and an update regarding its license agreement with The Walt Disney Company. The Company revealed that it will no longer have an exclusive license agreement with Disney and that certain executives violated Company policies and procedures with regard to the Company's stock option granting process. On this news, shares of the Company's common stock fell $5.59 per share, or 17%, to close at $27.43 per share.
If you are a member of the class, you may, no later than November 20, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.