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Case Status:    DISMISSED    
On or around 11/26/2013 (Other)

Filing Date: February 03, 2011

According to a press release dated February 03, 2011, the complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that: (i) notwithstanding defendants’ mantra about the Company being a great turnaround story, demand for the Company’s full-price inventory was extremely soft, which had resulted in the Company becoming saddled with excess inventory that could not be sold at full price; (ii) the Company could not keep pace with its competitors without turning to the dramatic and widespread promotional pricing that defendants had stated the Company would not have to resort to; and (iii) as a result of (i) and (ii) above, defendants knew that the profit and revenue numbers that they forecast to the market were illusory and unattainable.

On January 11, 2011, Talbots provided a Business Update and reported that quarter-to-date top line sales were down approximately 7% versus the fourth quarter of the prior year and the Company’s previously announced expectation for fourth quarter top-line sales in the range of flat to down low-single digits. Additionally, quarter-to-date comparable store sales were down approximately 6%. As a result of this news, the price of Talbots common stock dropped 17.4%, from a closing price $7.57 on January 10, 2011 to close at $6.25 on January 11, 2011, on almost six times the stock’s average daily trading volume.

On July 27, 2011, the Plaintiff filed an amended complaint alleging violations of Sections 10(b) and 20(a) of the Exchange Act.

On August 15, 2012, Plaintiffs filed their second amended complaint.

On July 3, 2013, the Court issued a Report and Recommendation on Defendants' Motion To Dismiss. On September 23, 2013, the Court accepted and adopted the Defendants’ motion due to a failure on the part of the plaintiffs to plead sufficiently materiality. On the same day, the Court entered an Order of Dismissal of this case.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Apparel)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TLB
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 11-CV-10186
JUDGE: Magistrate Judge Leo T. Sorokin
DATE FILED: 02/03/2011
CLASS PERIOD START: 12/08/2009
CLASS PERIOD END: 01/11/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Gilman & Pastor (Boston)
    63 Atlantic Avenue, 3rd Floor, Gilman & Pastor (Boston), MA 02110
    617/742-9700 617/742-9701 ·
  2. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
  3. VanOverbeke Michaud & Timmony, P.C.
    79 Alfred Street, VanOverbeke Michaud & Timmony, P.C., MI 48201
    313.578.1200 313.578.1200 ·
No Document Title Filing Date