Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) ( http://www.rgrdlaw.com/cases/francescas/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Francesca’s Holdings Corporation (“Francesca’s” ) (NASDAQ:FRAN) common stock during the period between March 20, 2013 and September 3, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/francescas/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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.
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