CASES
The Talbots, Inc. (2011)
Class Period: Dec 8, 2009 to Jan 11, 2011
Lead Plaintiff Deadline: Apr 4, 2011 + Deadline passed
Summary of Case:
A securities class actions has been filed against The Talbots, Inc. (2011) (TLB) ("Talbots" or the "Company") on behalf of all securities purchasers from December 8, 2009 through January 11, 2011, inclusive ("Class Period") in the United States District Court of Massachusetts.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about The Talbots' true financial condition, business and prospects. Specifically, the complaint alleges that: (i) notwithstanding defendants' mantra about the Company being a great turnaround story, demand for the Company's full-price inventory was extremely soft, which had resulted in the Company becoming saddled with excess inventory that could not be sold at full price; (ii) the Company could not keep pace with its competitors without turning to the dramatic and widespread promotional pricing that defendants had stated the Company would not have to resort to; and (iii) as a result of (i) and (ii) above, defendants knew that the profit and revenue numbers that they forecast to the market were illusory and unattainable.
On January 11, 2011, Talbots provided a Business Update and reported that quarter-to-date top line sales were down approximately 7% versus the fourth quarter of the prior year and the Company's previously announced expectation for fourth quarter top-line sales in the range of flat to down low-single digits. Additionally, quarter-to-date comparable store sales were down approximately 6%. As a result of this news, the price of Talbots common stock dropped 17.4%, from a closing price $7.57 on January 10, 2011 to close at $6.25 on January 11, 2011, on almost six times the stock's average daily trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.