FOX & KILSHEIMER LLP FILES
SECURITIES FRAUD CLASS ACTIOON
AGAINST GUESS?, INC.
NEW YORK – – Kaplan Fox & Kilsheimer LLP (www.KaplanFox.com) has filed a Class Action against Guess?, Inc. and certain of the Company’s officers and directors in the United States
District Court for the Central District of California. The suit is brought on behalf of all persons or entities who purchased the common stock of Guess?, Inc.
(“Guess”) (NYSE:GES) between February 14, 2000 and January 26, 2001 inclusive (the “Class Period”).
The complaint charges Guess and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued a series of false and misleading
statements concerning the Company’s business and financial condition, which were specifically designed to conceal the adverse financial condition of the Company and
thereby avoid a collapse in the price of Guess shares.
On November 9, 2000, after defendants had sold over $2.2 million
of their own Guess shares, they revealed that in the 3rdQ fiscal 2000 ("F00") Guess would earn only $0.13 per share compared to analysts' revised estimates of
$0.33 per share ($0.45 unrevised), that in the 4thQ F00 the Company would earn only $0.08 per share compared to an estimated of $0.44 per share (unrevised), and for F01
$0.95 per share compared to $1.85 per share (unrevised). In addition, and for the first time, defendants also revealed that Guess would record a loss of over $4.7 million
related to below cost sales of inventory, and an additional charge of $5.4 million to increase reserves for impaired or worthless inventory.
On January 26, 2001, the Company admitted that, throughout the
Class Period, it had artificially and improperly inflated its earnings by failing to expense costs or record accruals relating to the value of its substantially impaired
inventory. As a result of the Company's accounting improprieties, Guess was forced to restate its financial results for the 1stQ, 2ndQ and 3rdQ of fiscal 2000.
Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York and San Francisco, has many years of experience in prosecuting investor class
actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.KaplanFox.com. Plaintiff is also represented by the Law Offices of Bruce G. Murphy.
If you are a member of the Class, you may move the court no
later than March 30, 2001, to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your
rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:
Frederic S. Fox, Esq.
Janine R. Azriliant, Esq.
Donald R. Hall, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
Back to the Main List
Please Click Here to Join the Class Actions or Request Information