Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Francesca's Holdings Corporation
WAYNE, Pa., Sept. 30, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Francesca's Holdings Corporation ("Francesca's" or the "Company" ) (NASDAQ: FRAN) common stock during the period between March 20, 2013 and September 3, 2013 (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/fran.
The complaint charges Francesca's and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 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.
If you are a member of the class, you may, no later than November 26, 2013, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/fran or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at email@example.com. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP