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Remember that James Taylor and
Carly Simon song
about buying a mockingbird?
"And if that mockingbird don't sing
He's gonna buy me a diamond ring
And if that diamond ring won't shine
He's gonna surely break this heart of mine."
This week, Zale's diamonds may be shining across the
country, but Zale's stock (ZLC) broke the hearts of a lot of
their investors.
On Monday, Zale announced an unwanted visitor - the SEC.
The SEC won't be at a Zale mall location checking the quality
of Zale diamonds.
Instead, they will be at Zale's corporate headquarters examining
the veracity of the Company's financial records.
Specifically, on April 10, 2006, Zale Corporation announced that
the Securities and Exchange Commission initiated a non-public
investigation relating to various accounting and other matters
related to the Company, including accounting for extended
service agreements, leases and accrued payroll. Subpoenas
issued in connection with the investigation request materials
relating to these accounting matters as well as to executive
compensation and severance, earnings guidance, stock trading
and the timing of certain vendor payments.
This isn't what Zale investors had hoped to read about on a
Monday morning, and, as you would suspect, Zale stock dropped
significantly on this news.
It appears that investors who purchased Zale between
November 18, 2003 and April 7, 2006 are affected.
More trouble for Bausch & Lomb
Previously, we reported that Bausch & Lomb (BOL), at the end
of December 2005, indicated that it would restate its financial
results back to 2000 following an investigation into improper
conduct by management of its Brazilian subsidiary.
But this week, Bausch & Lomb investors received more bad
news. The Company announced that it would stop shipping its
ReNu MoistureLoc contact lens solution in the United States after
some users were diagnosed with a serious eye infections.
"Ouch" said consumers; "ouch, ouch" said investors;
and before you could say "I want another brand," Bausch & Lomb
stock quickly dropped 17%.
Investors who purchased BOL between January 27, 2005 and
April 10, 2006 have been affected by these developments.
Four recent cases of particular interest to many of our readers
may be:
Estee Lauder Companies Inc. (NYSE: EL)
It has been alleged that Estee Lauder insiders used both channel
stuffing and materially false and misleading statements to prop
up reported revenues and earnings long enough to sell millions
of their Estee Lauder shares are artificially inflated prices. Investors
who purchased Estee Lauder between April 28, 2005 and
October 25, 2005, are affected.
Sea Containers, Ltd. (NYSE: SCR-A)
On March 24, 2006, the Company revealed that it was restating
its financial statements to reflect a massive, $500 million
write-down of the value of its ferry and container assets, and that
it was in default of its loan covenants. The market reaction to
this news was harsh as the Company’s stock dropped nearly 40%.
Investors who purchased Sea Containers, Ltd. Stock between
March 15, 2004 and March 24, 2006, are affected.
Richardson Electronics (NASDAQ: RELL)
On April 4, 2006, after the close of trading, RELL disclosed:
1) that it would restate its financial statements for the years
ended May 31, 2003, May 29, 2004 and May 28, 2005, and
the interim periods ended September 3, 2005 and
December 3, 2005; and 2) the Company’s President, Chief
Operating Officer and Board Member resigned. Investors
who purchased the stock between October 1, 2002 and
April 6, 2006, are affected.
CSK Auto Corporation (CAO)
The Company stunned its investors when, on March 27, 2006,
the Company announced that it would not file its fourth quarter
and fiscal 2005 financial results on time and disclosed that it
will restate its financial statements for 2002 through 2005.
Investors who purchased between June 23, 2003 and
March 24, 2006, are affected.
If you are an affected investor in any of these companies, you
may wish to contact us at info@securitiessleuth.com or
877.511.4717 to discuss your options.
However, at this time there are an unusually large number of
corporate irregularities. Other cases of corporate irregularities
include:
- Northfield Laboratories, Inc. (NFLD)
- PainCare Holdings, Inc. (PRZ)
- Merge Tech Inc. (MRGE)
- Nature's Sunshine Product, Inc. (NATRE)
- America Service Group Inc. (ASGRE)
- Global Power Equipment (GEG)
- PHH Corporation (PHH)
- Allion Healthcare, Inc. (ALLI)
- Terayon (TERNE)
- GMH Communities Trust (NYSE: GCT)
For details regarding any of these cases, go to
www.securitiessleuth.com or contact us at the email and
number noted above.
Now with respect to settled cases. If you are an affected
investor – you purchased any of these stocks during the
relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
proportionate share of recovery.
Two cases that have recently settled that may be of particular
interest are:
Royal Ahold N.V. (AHO)
Class Period: July 30, 1999 to February 23, 2003
Claims Deadline: August 18, 2006
Claims Administrator: Garden City
Textron, Inc. (TXT)
Class Period: October 19, 2000 to September 26, 2001
Claims Deadline: June 21, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including:
- Bristol-Myers Squibb (BMY)
- Eaton Vance Corp. (EV)
- eFunds Corporation (EFD)
- Uniroyal Technology Corp. (UTCIQ)
...can be found at www.securitiessleuth.com.
Again, if you are affected by a settled case, then you should
contact the claims administrator (rather than us). However,
if you are an affected investor in any of the companies under
investigation, you many wish to contact us so that you
can consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim --
you're encouraged to contribute to the Sleuth by giving your
own tip-offs at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair
at 877-511-4717. If you have a friend or colleague you
think would benefit from The Sleuth, please pass along
this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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