HARTFORD, Conn., Jan. 15, 2008 (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 Northern District of Illinois on behalf of all persons who purchased the common stock of Ulta Salon, Cosmetics & Fragrance, Inc. ("Ulta" or the "Company") (Nasdaq:ULTA) pursuant or traceable to the Company's October 25, 2007 Initial Public Offering (the "IPO" or the "Offering") through December 10, 2007 inclusive (the "Class Period").
The Complaint charges that Ulta and certain of its officers and directors violated federal securities laws. On October 25, 2007, the Company conducted its IPO through a Registration Statement and Prospectus which failed to disclose any material information about third quarter 2007 earnings, despite the fact that the third quarter was to end nine days after the filing of the Registration Statement. Specifically, the Registration Statement failed to disclose the following facts: (i) Ulta was unable to effectively manage inventory, resulting in a 40% increase of inventory; (ii) that the Company's selling, general, and administrative expenses ("SG&A"), as a percentage of net sales, had increased in the third quarter, largely a result of previously undisclosed increased advertising expenses; and (iii) that the Company lacked adequate internal and financial controls.
On December 11, 2007, Ulta released its third quarter 2007 fiscal results. The Company revealed that it had an additional $15 million of seasonal inventory, and that its SG&A had increased 36% to $55.6 million, due largely to increased expenditure for advertising. On this news, shares of Ulta declined $6.59 per share, or 23.96 percent, to close at $20.91 per share.
If you are a member of the class, you may, no later than February 19, 2008, 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.