RADNOR, Pa., Jan. 11 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of Illinois on behalf of all purchasers of common stock of Ulta Salon, Cosmetics & Fragrance, Inc. ("Ulta" or the "Company") pursuant or traceable to the Company's October 25, 2007 Initial Public Offering (the "IPO" or the "Offering") through December 10, 2007 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 Topaz & Kessler, 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 Ulta and certain of its officers and directors with violations of the Security Act of 1933 and Securities Exchange Act of 1934. Ulta is a retailer of beauty products which includes fragrances, skin care, cosmetics, styling and salon tools, and haircare. 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 the Company was unable to effectively manage inventory, resulting in a 40% increase of inventory; (2) that the Company's SG&A, as a percentage of net sales, had increased in the third quarter, largely a result of previously undisclosed increased advertising expenses; (3) that the Company did not reveal any significant information about third quarter 2007 earnings in their Registration Statement, despite the fact that the third quarter was to end nine days after the filing of the Registration Statement; and (4) that the Company lacked adequate internal and financial controls.
On October 25, 2007, the Company conducted its IPO. In connection with its IPO, the Company filed a Registration Statement and Prospectus (collectively referred to as the "Registration Statement") with the SEC. The IPO was a financial success for the Company, as it sold 8.54 million shares of stock at $18 per share, raising over $153 million. At the close of business on October 25, 2007, Ulta's stock had increased $11.82 per share to $29.82, representing a 65.67% increase from the IPO price.
In its Registration Statement and throughout the Class Period, Ulta reported and alluded to financial results from its 2007 first and second quarters, implying that consistent trends in expenses and inventory levels would continue. The Company failed to make any significant reference to the third quarter 2007, which was to close on November 9, 2007, nine days after the Registration Statement was issued.
Then on December 11, 2007, Ulta shocked investors when it released its third quarter 2007 fiscal results. Therein, the Company revealed that it had an additional $15 million of seasonal inventory, and that its selling, general, and administrative expenses ("SG&A") had increased 36% to $55.6 million, due largely to increased expenditure for advertising. On this news, shares of the Company's stock declined $6.59 per share, or 23.96 percent, to close on December 11, 2007 at $20.91 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 Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler 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 Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than February 19, 2008, 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, 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
