| Company: | Jos. A. Bank Clothiers, Inc. |
| Ticker Symbol: | Nasdaq:JOSB |
| Class Period: | January 5, 2006 to June 7, 2006, |
| Date Filed: | Jul-25-06 |
| Lead Plaintiff Deadline: | Sep-25-06 |
| Court: | District, MD |
| Allegations: |
A securities fraud class action lawsuit was commenced in the United States District Court for the District of Maryland, on behalf of purchasers of the common stock of Jos. A. Bank Clothiers, Inc. ("Jos. A. Banks" or the "Company") (Nasdaq:JOSB) between January 5, 2006 and June 7, 2006, inclusive (the "Class Period").
The Complaint charges Jos. A. Bank Clothiers, Inc. and Robert N. Wildrick with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by issuing a series of materially false and misleading statements to the market during the Class Period concerning the Company's inventories and their impact on the Company's business and finances. Specifically, the complaint alleges that the Company failed to disclose the following:
(a) the Company had overinvested in inventories of fall clothing, building excessive levels of in-stock inventories of seasonal merchandise, in light of demand, that carried over into the first quarter of 2006;
(b) these inventories were at such excessive levels that the Company resorted to very aggressive promotional pricing in February and March 2006 which deeply discounted the prices of the merchandise, discounts significantly greater than the Company's historical practice, in order to move the merchandise and make room for new season merchandise within the financial constraints in which the Company operated and financed its inventories and new store openings;
(c) the Company's gross profit margins were substantially reduced in February and March 2006 by reason of the inventory and pricing actions taken by defendants which caused the Company's profit margins and profits in February and March 2006 to shrink dramatically even as sales revenues increased, which represented an extreme departure from Jos. A. Bank's historical pattern; and
(d) Defendant Wildrick, while he was touting the current and future operational and financial strengths of Jos. A. Bank and the 52% appreciation in the Company's stock price in 2005 on the NASDAQ was selling large blocks of his personal stock.
Then, on June 8, 2006, defendants dropped a bombshell announcing that the Company's net income for the first quarter of 2006 had fallen 13% even as sales revenues increased 18%. The market was stunned by defendants' belated disclosures. The Company's common stock fell 29%, dropping $10.72 to close at $26.40 per share on June 8, 2006.
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 Jos. A. Bank Clothiers, Inc. and Robert N. Wildrick with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by issuing a series of materially false and misleading statements to the market during the Class Period concerning the Company's inventories and their impact on the Company's business and finances. Specifically, the complaint alleges that the Company failed to disclose the following:
(a) the Company had overinvested in inventories of fall clothing, building excessive levels of in-stock inventories of seasonal merchandise, in light of demand, that carried over into the first quarter of 2006;
(b) these inventories were at such excessive levels that the Company resorted to very aggressive promotional pricing in February and March 2006 which deeply discounted the prices of the merchandise, discounts significantly greater than the Company's historical practice, in order to move the merchandise and make room for new season merchandise within the financial constraints in which the Company operated and financed its inventories and new store openings;
(c) the Company's gross profit margins were substantially reduced in February and March 2006 by reason of the inventory and pricing actions taken by defendants which caused the Company's profit margins and profits in February and March 2006 to shrink dramatically even as sales revenues increased, which represented an extreme departure from Jos. A. Bank's historical pattern; and
(d) Defendant Wildrick, while he was touting the current and future operational and financial strengths of Jos. A. Bank and the 52% appreciation in the Company's stock price in 2005 on the NASDAQ was selling large blocks of his personal stock.
Then, on June 8, 2006, defendants dropped a bombshell announcing that the Company's net income for the first quarter of 2006 had fallen 13% even as sales revenues increased 18%. The market was stunned by defendants' belated disclosures. The Company's common stock fell 29%, dropping $10.72 to close at $26.40 per share on June 8, 2006.
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.
