BALA CYNWYD, Pa., Dec. 17 2004 – LAWFUEL – First with law news — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of California on behalf of all
securities purchasers of Charlotte Russe Holding Inc. (Nasdaq: CHIC)
(“Charlotte” or the “Company”) from January 22, 2004 through December 6, 2004
inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check,
Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
The complaint charges Charlotte, Mark Hoffman, and Daniel Carter with
violations of the Securities Exchange Act of 1934. Charlotte is a mall-based
specialty retailer of apparel and accessories targeting young women between
the ages of 15 and 35. The Company has two distinct store concepts: Charlotte
Russe and Rampage.
The complaint alleges that the Company failed to disclose and
misrepresented the following material adverse facts which were known to
defendants or recklessly disregarded by them: (1) that the strategic
repositioning of the Rampage stores was failing to produce tangible results;
(2) that other measures, promoted by management, as actions designed to
improve operations, were proving futile in both the merchandising and store
organizations; and (3) that as a result of the above, the defendants’ fiscal
2004 projections were lacking in any reasonable basis when made.
On September 9, 2004, Charlotte reported revised guidance for the fourth
quarter of fiscal 2004 which will end on September 25, 2004. News of this
shocked the market. Shares of Charlotte fell $3.43 per share, or 23.44
percent, on September 9, 2004, to close at $11.20 per share. Then on
December 6, 2004, Charlotte reported that Donna Desrosiers, Executive Vice
President and GMM for the Charlotte Russe chain, had resigned for personal
reasons. The Company also announced that, as a result of weaker than expected
sales during the quarter to date, it was now forecasting that comparable
stores sales would decline mid to high single-digits during the first quarter
of fiscal 2005 ending on December 25, 2004. The Company had previously guided
investors to expect a low single-digit comparable sales increase for the
quarter. On this news shares of Charlotte fell $0.82 per share, or 7.52
percent, on December 7, 2004, to close at $10.09 per share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com
If you are a member of the class described above, you may, not later than
February 15, 2005 move the Court to serve as lead plaintiff of the class, if
you so choose. 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 Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, Esq.
Three Bala Plaza East, Suite 400
Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
