SAN DIEGO, Dec. 11, 2009 (GLOBE NEWSWIRE) -- Robbins Umeda LLP has begun an investigation into possible mismanagement at Zale Corporation ("Zale" or the "Company"). Zale, a specialty retailer of diamonds and other jewelry products, was founded in 1989 and is headquartered in Irving, Texas. On October 29, 2009, Zale issued its fourth quarter and full fiscal year-end 2009 financial results, reporting a net loss for the year ending July 31, 2009 of $189.5 million.
The San Diego-based shareholder rights firm's investigation concerns Zale's Annual Report filed with the Securities Exchange Commission ("SEC") on October 29, 2009, in which Zale provided restated financial information for fiscal year 2005 through the third quarter 2009, to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes. As a result of the restatement, Zale dramatically reduced its reported earnings for the period by 23%, from $138.3 million on an aggregate basis to $112.7 million. Zale further reported a material weakness in its internal controls. Moreover, Zale announced that the SEC had initiated an investigation related to Zale's restatement.
Several class action lawsuits alleging violations of the Securities Exchange Act of 1934 have been filed on behalf of shareholders who purchased or otherwise acquired stock of Zale during the period between November 16, 2006 through and including October 29, 2009 (the "Class Period") that seek recovery from Zale and certain of its officers for the damage they have suffered by purchasing Zale stock at allegedly inflated prices.
If you purchased Zale Corporation stock prior to November 16, 2006 and continue to hold your shares, and you would like more information about your rights as a shareholder, please contact attorney Lauren Levi at 800-350-6003 or by email at llevi@robbinsumeda.com.
Robbins Umeda is a California-based law firm, which has significant experience representing investors in shareholder derivative and securities class actions. For more information about the firm, please go to http://www.robbinsumeda.com.
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