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Ohio-based Tween Brands, Inc. (NYSE: TWB) and its subsidiaries operate as a specialty retailer for “tween” girls in the United States. It primarily operates two specialty retailing concepts under the Limited Too' and Justice brand names.
Before the opening of trading on August 22, 2007, the Company disclosed its financial results for the period ended June 30, 2007, which significantly missed both the Company’s own estimates and those of certain stock analysts. In addition, Tween Brands disclosed that third quarter profit was likely to decline due to a retail calendar shift and increased inventory markdowns.
Not surprisingly, shares of Tween Brands hit a one-year low. At least two analysts downgraded the Company’s stock. One analyst stated that the reasons provided by the Company cannot completely explain the Company’s poor results.
We are investigating this matter and investors who purchased this stock between May 23, 2007 and August 21, 2007 may be affected.
Children’s Place Lowers Its Guidance
New Jersey-based The Children's Place Retail Stores, Inc. (NASDAQ: PLCE), through its subsidiaries, operates as a specialty retailer of merchandise for children from newborn to ten years of age.
On August 22, 2007, stock in The Children’s Place significantly declined after the Company disclosed that it lowered its full-year guidance to $2.25 to $2.40 per share from a prior view of $3.45 to $3.55 per share. The Company stated that while it believed the work surrounding the accounting for its historical stock option grants is substantially completed, additional factors surfaced that caused further delay in the filing of its reports with the SEC. Specifically, the Company indicated that an ongoing review into its internal controls has found violations of Company procedures by two executives.
We are investigating this matter and investors who purchased Children’s Place securities between May 15, 2003 and August 22, 2007 may be affected.
Case Filed Against Taiwanese Company
Taiwan-based Himax Technologies, Inc. (NASDAQ: MIMX), together with its subsidiaries, engages in the design, development, and marketing of semiconductors that are used as components of flat panel displays.
A case has been filed in the United States District Court for the Central District of California. It is alleged that the Defendants made certain false and/or misleading statements in the Prospectus issued in connection with the Company’s IPO. Specifically, it is alleged that the Prospectus failed to disclose that at the time of the IPO, Himax’s primary operations faced an imminent material reduction in customer demand due to unusually high inventory levels being experienced by the Company’s customers.
We are investigating this matter and investors who purchased Himax between March 30, 2006 and May 9, 2007, including purchasers in the Company’s initial public offering on March 30, 2006 may be affected.
Other cases under investigation include:
Luminent Mortgage Capital (NYSE: LUM)
Heelys, Inc. (NASDAQ: HLYS)
Scholastic Corp. (NASDAQ: SCHL)
Pall Corporation (NYSE: PLL)
If you are an affected investor in any of these companies or the three companies highlighted this week, you may wish to contact us at info@securitiessleuth.com or 202.338.1756.
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 http://securitiessleuth.typepad.com or by e-mailing info@securitiessleuth.com.
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
http://www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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