NEW YORK, Sept. 1, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Body Central Corp. ("Body Central" or the "Company") (NasdaqGS: BODY).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company's merchandise miss was not an isolated, quickly fixable event, but would take at least several quarters to remedy and would have a material, negative impact on the Company's financial results; (2) the Company's stores were experiencing increasingly poor performance and financial results; and (3) Body Central executives had issued misleading statements regarding the Company's operations and business outlook.
On May 3, 2012, Body Central published a press release announcing its first quarter 2012 financial results. In it, the Company unexpectedly issued a weak forecast for second quarter and full year earnings, citing an expected decrease in comparable store sales. For the second quarter, the Company forecast earnings between $0.26 and $0.28 cents, well below market expectations of $0.36. The Company forecasted full year earnings of $1.34 to $1.38, below the average analyst forecast of $1.52. On this news, Body Central common stock abruptly lost almost half of its value, falling $14.04 per share to close at $14.88 per share on May 4, 2012, a one-day decline of more than 48%.
Then, on June 18, 2012, Body Central issued a press release "revising sales and earning guidance for its second quarter and full year 2012." On this news, Body Central common stock again lost almost half of its value, falling $7.77 per share from a closing price of $15.99 on June 15, 2012 to close at $8.22 per share on June 18, 2012, the next trading day - a one-day decline of more than 48% - on volume of more than 14 million shares traded.
Request more information now by clicking here: www.faruqilaw.com/BODY. There is no cost or obligation to you.
Take Action
If you purchased Body Central securities between November 10, 2011 and June 18, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/BODY. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Body Central's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP
