The Shuman Law Firm today announced that a lawsuit seeking class action
status has been filed in the U.S. District Court for the Southern
District of New York on behalf of purchasers of Francesca’s Holdings
Corporation, Inc. (“Francesca’s” or the “Company”) (Nasdaq: FRAN)
securities between March 20, 2013 and September 3, 2013, inclusive (the
“Class Period”). Francesca’s is a Texas-based company that operates a
chain of retail boutiques.
If you wish to discuss this action or have any questions concerning this
notice or your rights and interests with respect to this matter, please
contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 974-8626 or
email Mr. Shuman at kip@shumanlawfirm.com
or Mr. Glenn at rusty@shumanlawfirm.com.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company's
financial performance and future prospects. Specifically, the complaint
alleges that during the Class Period, defendants failed to disclose the
following adverse facts: (i) that unseasonably rainy and cold spring and
summer weather had diminished the mall traffic Francesca's relied upon
to drive same-store sales growth; (ii) that a competitive back-to-school
retail environment weighed on same-store sales growth; (iii) that
same-store sales were declining, forcing Francesca's to rely upon new
store openings to increase sales; (iv) that Francesca's had been forced
to engage in promotional selling at significant discounts during its
first quarter 2013 in order to meet its financial targets; (v) that
Francesca's had been forced to increase promotional activity during the
second quarter of 2013; (vi) that Francesca's concealed the impact sales
terms and margins with its suppliers would have on its ability to
maintain above-average profit margins; and (vii) that, as a result, the
Company was not on track to achieve the financial results defendants had
led the market to expect during the Class Period. Importantly, the
complaint also alleges that as a result of defendants' false and
misleading statements during the Class Period, certain Company insiders
were able to sell hundreds of millions of dollars of Francesca's stock
at artificially inflated prices.
On September 4, 2013, shares of Francesca's fell nearly 26 percent to
$17.79 after the Company announced its disappointing second quarter 2013
financial results and third quarter 2013 guidance.
If you are a member of the proposed class, you may request that the
Court appoint you as lead plaintiff of the class no later November 26,
2013. 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.
The Shuman Law Firm represents investors throughout the nation,
concentrating its practice in securities class actions and derivative
litigation.
Copyright Business Wire 2013