RADNOR, Pa., Aug. 31 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Florida on behalf of all securities purchasers of Parlux Fragrances, Inc. ("Parlux" or the "Company") from February 8, 2006 through August 10, 2006, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges Parlux and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that increased advertising costs and decreased sales were negatively impacting the Company's financial results; (2) that the Company lacked adequate internal controls; and (3) that, as a result of the above, defendants' statements concerning Parlux's financial performance were lacking in any reasonable basis when made.
On June 29, 2006, Parlux announced that it would delay filing its Form 10- K for a second time because management had not yet completed its assessment of the internal controls and reporting requirements of the Sarbanes-Oxley Act of 2002. On this news, shares of Parlux shed $0.31, or 3.1 percent, to close, on June 30, 2006, at $9.69 per share. On August 10, 2006, after the market closed and despite previous assurances that the Company had resolved its internal controls and Sarbanes-Oxley reporting issues, Parlux stunned investors when the Company announced that it would delay filing its quarterly report with the SEC. Additionally, Parlux reported that its earnings for the quarter would be lower than previous guidance suggested due to decreased sales to U.S. department stores and significantly increased advertising and promotional costs. On this news, shares of Parlux plummeted $3.38, or 41.4 percent, to close, on August 11, 2006, at $4.78 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than October 16, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
