Stockholders v Men's Wearhouse Inc.
Stockholders File Lawsuit Against Men's Wearhouse Inc.
According to press release dated October 08, 2009, the complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Companys financial condition, business and prospects. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose the following adverse facts, among others: (a) that the K&G division was performing poorly and not meeting internal expectations; (b) that the Company was experiencing significant difficulties integrating the After Hours acquisition which was causing a severe disruption in that divisions business and reducing sales volumes below budgeted levels; (c) that, given the deteriorating demand for the Companys products, the Company was forced to significantly discount products beyond customary discounts which would further erode earnings; and (d) that as a result of the foregoing, defendants positive statements concerning the Companys guidance and prospects were lacking in a reasonable basis at all relevant times.
On January 9, 2008, Mens Wearhouse announced its mid fourth quarter update for the quarter ending February 2, 2008. In response to the Companys reduced guidance for fiscal 2007, the price of Mens Wearhouse common stock fell $7.60 per share, or 30%, to close at $17.84 per share, on January 10, 2008, on extremely heavy trading volume.
If you bought Men's Wearhouse Inc. securities and would like to obtain information about the Men's Wearhouse Inc. lawsuit, then you are invited to call Kahn Swick & Foti, LLC toll free at (866) 467-1400 extension 100 to speak with an attorney or visit www.ksfcounsel.com.
