Federman & Sherwood announces the commencement of an investigation into Gordmans Stores, Inc., ("Gordmans" or the "Company") (NASDAQ: GMAN) to determine whether the Company issued false and misleading statements to its shareholders.
Gordmans is a retail discount department store based in Omaha, Nebraska. On March 19, 2012, Gordmans issued a press release announcing fourth quarter and fiscal year 2011 earnings. Gordmans attributed its “strong operating results” to its new store openings and continued expansion of gross profit margins. On May 25, 2012, Gordmans filed its prospectus supplement for a public offering. Gordmans offered to sell 40,000 shares of common stock and selling stockholders offered to sell 3,003,532 shares of common stock at $16.75 per share. Since this offering, the price of the securities has declined substantially. For example, on January 14, 2013, Gordmans updated its fourth quarter and fiscal year outlook by decreasing its revenue guidance and substantially decreasing its EPS guidance. On this news, the stock price dropped 16.5% to $11.66 per share on high volume. We are investigating whether the Company issued false and misleading statements or failed to disclose material, adverse facts about the Company in connection with the above.
What You Can Do
If you are a Gordmans shareholder who purchased shares related to the Company’s 2012 public offering of securities, you may have legal claims under the securities laws. If you wish to discuss this investigation or have questions about this notice or your legal rights, please contact Federman & Sherwood. There is no cost to you. No representation is made that the quality of legal services to be performed is greater than the quality of legal services to be performed by other lawyers.
Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.