Collective Brands Shareholder Alert: The Briscoe Law Firm and Powers Taylor, LLP Investigate Possible Breaches of Fiduciary Duty by the Officers and Directors of Collective Brands, Inc.

DALLAS, Jan. 26, 2012 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Collective Brands, Inc. ("Collective Brands" or "PSS") (NYSE: PSS) related to potential securities violations by between December 1, 2010 and May 24, 2011 (the "Class Period").

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"Recent revelations about alleged improper business practices and procedures regarding key aspects of the company's Payless ShoeSource business line and other misleading financial statements have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by Collective Brands' officers and directors.  Based on our investigation, we are prepared to pursue litigation to preserve the company and the value of Collective Brands/PSS stock for all shareholders," said shareholder rights attorney Willie Briscoe.

If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [email protected], or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at [email protected].  There is no cost or fee to you.

In a recently filed federal class action complaint, Collective Brands and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934.  Specifically, the complaint alleges that defendants' statements during the Class Period were each materially false and misleading in that defendants knew or recklessly disregarded that: (a) the Company's inventory level for Payless remained at excessively high levels and aging inventory for its Payless segment was a concern; (b) sales at Collective Brands' flagship Payless stores were significantly worse than expected due to deteriorating customer demand; and (c) Collective Brands was forced to mark down Payless' bloated inventory at significant discounts, which adversely affected the company's margins and financial results for its first quarter.  As a result, it is claimed that Collective Brands traded at artificially high prices during the Class Period, reaching a high of $23.44 per share on February 18, 2011.  When Collective Brands finally reported its financial results for its first fiscal quarter ended April 30, 2011, Collective Brands' shares collapsed and declined by nearly 17% in a single day.

The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.

SOURCE Powers Taylor LLP