NEW YORK, Dec. 15 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the Northern District of Texas on behalf of those who purchased or otherwise acquired stock of Zale Corporation ("Zale" or the "Company") during the period between November 16, 2006 through and including October 29, 2009 (the "Class Period").
According to the complaint, during the Class period defendants made false and/or misleading statements and failed to disclose, among other things, the following material adverse facts: (i) that instead of recording certain advertising costs as an expense, Zale improperly recorded them as prepaid advertising; (ii) that Zale improperly accounted for intercompany accounts receivable associated with its wholly owned insurance subsidiaries; (iii) that as a result, Zale's financial results were overstated during the Class Period and were not prepared in accordance with Generally Accepted Accounting Principles; (iv) that Zale lacked adequate internal and financial controls; and, (v) that as a result of the foregoing, Zale's financial statements were materially false and misleading at all relevant times.
The company filed its Annual Report with the United States Securities and Exchange Commission (the "SEC") for the Fiscal year ended July 31, 2009, containing restated financial information for fiscal 2008, 2009 and prior periods, to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes. Zale also disclosed that the SEC was investigating the accounting issues that led it to restate its earnings for 2008 and 2009. The price of Zale's shares fell almost 26% on this news.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. January 7, 2010 is the deadline for investors to seek a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.
Bronstein, Gewirtz & Grossman, LLC
CONTACT: Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz &
Grossman, LLC, +1-212-697-6484, eitan@bgandg.com
