| Company: | Wet Seal, Inc. |
| Ticker Symbol: | NASD: WTSLA |
| Class Period: | January 8, 2004 to August 19, 2004 |
| Date Filed: | Aug-27-04 |
| Lead Plaintiff Deadline: | Oct-25-04 |
| Court: | Central District, CA |
| Allegations: |
A class action lawsuit has beenfiled on behalf of purchasers of the securities of Wet Seal, Inc. ("Wet Seal" or the "Company") (NASDAQ:WTSLA) between January 8, 2004 and August 19, 2004 inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The action is pending in the United States District Court for the Central District of California, against Wet Seal, Peter D. Whitford, Joseph E. Deckop, Stephen Gross and Irving Teitelbaum.
The complaint charges Wet Seal, Peter D. Whitford, Joseph E. Deckop, Stephen Gross and Irving Teitelbaum with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, 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 Company's strategic initiatives plan was not strengthening the Company's corporate standing. In fact, the Company's strategic initiatives plan was a complete and total disaster that was leading the Company into financial ruin; (2) that demand for the Company's products was based on deep-discounting and that without deep-discounting its products, demand for such was at an all time low; and (3) that as a result of the above, the Company's projections, outlooks, and positive statements, were lacking in any reasonable basis when made. Under the cover of these misleading statements, Defendants Gross and Teitelbaum sold almost $15 million of Wet Seal stock under their control to deceived and mislead investors.
On August 19, 2004, after the market closed, Wet Seal shocked the market by reporting a net loss from continuing operations of $3.20 per share for the second quarter ended July 31, 2004. Following this post-market announcement, shares of Wet Seal shed $1.25 per share, or 59.52 percent, to close at $0.85 per share on unusually high trading volume on August 20, 2004.
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 action is pending in the United States District Court for the Central District of California, against Wet Seal, Peter D. Whitford, Joseph E. Deckop, Stephen Gross and Irving Teitelbaum.
The complaint charges Wet Seal, Peter D. Whitford, Joseph E. Deckop, Stephen Gross and Irving Teitelbaum with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, 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 Company's strategic initiatives plan was not strengthening the Company's corporate standing. In fact, the Company's strategic initiatives plan was a complete and total disaster that was leading the Company into financial ruin; (2) that demand for the Company's products was based on deep-discounting and that without deep-discounting its products, demand for such was at an all time low; and (3) that as a result of the above, the Company's projections, outlooks, and positive statements, were lacking in any reasonable basis when made. Under the cover of these misleading statements, Defendants Gross and Teitelbaum sold almost $15 million of Wet Seal stock under their control to deceived and mislead investors.
On August 19, 2004, after the market closed, Wet Seal shocked the market by reporting a net loss from continuing operations of $3.20 per share for the second quarter ended July 31, 2004. Following this post-market announcement, shares of Wet Seal shed $1.25 per share, or 59.52 percent, to close at $0.85 per share on unusually high trading volume on August 20, 2004.
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.
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.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
