| Company: | Charlotte Russe Holding Inc. |
| Ticker Symbol: | NASD: CHIC |
| Class Period: | January 22, 2004 to December 6, 2004 |
| Date Filed: | Dec-17-04 |
| Lead Plaintiff Deadline: | Feb-15-05 |
| Court: | Southern District, CA |
| Allegations: |
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 (Class Period).
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.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
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.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Case
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
