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Case Status:    DISMISSED    
On or around 07/26/2012 (Notice of voluntarily dismissal)

Filing Date: January 25, 2012

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, the Company’s stock traded at artificially inflated prices during the Class Period, reaching a high of $23.44 per share on February 18, 2011.

On May 24, 2011, after the market closed, the Company announced its financial results for its first fiscal quarter ended April 30, 2011. The Company reported earnings of $26.4 million or $0.42 diluted earnings per share for the first quarter, which was nearly 50% less than the $0.82 diluted earnings per share expected by analysts. The Company further reported that net sales declined 1.1% to $869.0 million, due in substantial part to the Company’s 7.4% comparable store sales decline in its Payless domestic segment, offset by sales growth of 22.5% in one of its subsidiary companies. On this news, the Company’s stock dropped $3.06 per share to close at $15.31 per share on May 25, 2011, a one-day decline of nearly 17%.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company’s inventory level remained at excessively high levels and aging inventory for its discount shoe chain segment was a concern; (b) sales at the Company’s flagship stores were significantly worse than expected due to deteriorating customer demand; and (c) the Company was forced to mark down bloated inventory at significant discounts, which adversely affected the Company’s margins and financial results for its first quarter.

On July 26, 2012, the plaintiff voluntarily dismissed the Complaint without prejudice.


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


Ticker Symbol: PSS
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. Kansas
DOCKET #: 12-CV-02046
JUDGE: Hon.Kathryn H. Vratil
DATE FILED: 01/25/2012
CLASS PERIOD END: 05/24/2011
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  2. Stueve Siegel Hanson LLP
    460 Nichols Road, Suite 200, Stueve Siegel Hanson LLP, MI 64112
    816.714.7100 816.714.7101 ·
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