According to a law firm press release dated December 11, 2007, a class action has been commenced on behalf of purchasers of Zumiez, Inc.common stock.
The complaint charges Zumiez and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Zumiez, a mall-based specialty retailer, provides action sports-related apparel, footwear, equipment, and accessories.
According to the complaint, during the class period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that sales of the Company’s winter merchandise were not performing according to internal expectations; (ii) that the Company’s retail stores were underperforming and some store sales were in decline; and (iii) as a result of the forgoing, the defendants had no reasonable basis for their positive statements about the Company’s prospects and guidance for fiscal 2007.
On November 7, 2007, the Company issued a press release announcing its October 2007 sales results, its preliminary third quarter earnings and revised guidance for fiscal 2007. In response to this announcement, shares of the Company’s common stock fell $10.71 per share, or 27%, to close at $28.74 per share, on heavy trading volume.
On March 30, 2009, an Order Granting Defendants’ Motion To Dismiss with prejudice was entered by the court.