Case Page

 

Case Status:    DISMISSED    
On or around 06/12/2015 (Other)

Filing Date: September 27, 2013

According to the law firm press release, Francesca’s operates a chain of 429 retail boutiques and a retail website offering fashion apparel, jewelry, accessories, and gifts.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects. Specifically, the complaint alleges that during the Class Period, defendants failed to disclose the following adverse facts: (i) that unseasonably rainy and cold spring and summer weather had diminished the mall traffic Francesca’s relied upon to drive same-store sales growth; (ii) that a competitive back-to-school retail environment weighed on same-store sales growth; (iii) that same-store sales were declining, forcing Francesca’s to rely upon new store openings to increase sales; (iv) that Francesca’s had been forced to engage in promotional selling at significant discounts during its first quarter 2013 in order to meet its financial targets; (v) that Francesca’s had been forced to increase promotional activity during the second quarter of 2013; (vi) that Francesca’s concealed the impact sales terms and margins with its suppliers would have on its ability to maintain above-average profit margins; and (vii) that, as a result, the Company was not on track to achieve the financial results defendants had led the market to expect during the Class Period. As a result of defendants’ false and misleading statements during the Class Period, certain company insiders were able to sell hundreds of millions of dollars of Francesca’s stock at artificially inflated prices.

On September 4, 2013, the Company announced dismal second quarter 2013 financial results and third quarter 2013 guidance. On this news, the price of Francesca’s common stock, which had traded above $32 per share during the Class Period, plummeted more than 44% from that level to close at $17.79 per share on September 4, 2013.

On December 17, 2013, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving lead counsel. Lead Plaintiff filed a consolidated complaint on March 14, 2014.

This case was dismissed with prejudice on March 31, 2015. A notice of Appeal of this decision was filed on April 29. That appeal with withdrawn on June 12.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: FRAN
Company Market: NASDAQ
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: S.D. New York
DOCKET #: 13-CV-06882
JUDGE: Hon. Richard J. Sullivan
DATE FILED: 09/27/2013
CLASS PERIOD START: 03/20/2013
CLASS PERIOD END: 09/03/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 13-CV-06882
JUDGE: Hon. Richard J. Sullivan
DATE FILED: 03/14/2014
CLASS PERIOD START: 07/22/2011
CLASS PERIOD END: 09/03/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (Former New York), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date