CASES
Aeropostale, Inc.
Class Period: Feb 3, 2011 to Aug 3, 2011
Lead Plaintiff Deadline: Dec 12, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Aeropostale, Inc. ("Aeropostale" or the "Company") on behalf of all persons or entities who purchased the common stock of Aeropostale between February 03, 2011 to August 03, 2011. This case has been filed in the USDC - New York (Southern).
The complaint alleges that, during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, Defendants misrepresented and/or failed to disclose the following adverse facts: (i) that Aeropostale was experiencing declining demand for its women's fashion division, which makes up 70% of the Company's sales; (ii) that Aeropostale was enduring pressure on its profit margins as a result of increasing inventory and higher discounts on its clothing; and (iii) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On August 4, 2011, Aeropostale provided a business update for the second quarter of 2011. For the quarter, the Company reported net sales of $468.2 million, a decrease of 5% from the second quarter of 2010, and expected net earnings to be in the range of $0.02 to $0.03 per share - well below the Company's guidance of $0.11 to $0.16 per share. In reaction to the Company's announcement, on August 4, 2011, the price of Aeropostale stock fell $3.99 per share, or 24%, to close at $12.53 per share, on extremely heavy 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.