| Company: | Whitehall Jewellers, Inc. |
| Ticker Symbol: | NYSE: JWL |
| Class Period: | November 19, 2001 through December 10, 2003 |
| Court: | Northern District, IL |
| Date Filed: | Feb-20-04 |
| Lead Plaintiff Deadline: | Apr-12-04 |
| Allegations: |
An investor sued Whitehall Jewellers, Inc. (NYSE:JWL) today, claiming the jewelry retailer and four top officers issued misleading financial results.
The class action was filed in the U.S. District Court for the Northern District of Illinois. It seeks damages for violations of federal securities laws on behalf of all investors who bought Whitehall common stock from November 19, 2001 through and including December 10, 2003 (the "Class Period").
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission (SEC) Rule 10b-5.
The complaint names as defendants the company, Hugh M. Patinkin, the chairman, chief executive officer and president; Jon H. Browne, the former chief financial officer, treasurer and executive vice president, Matthew M. Patinkin, the executive vice president of operations; and John R. Desjardins, the interim chief financial officer and executive vice president of operations.
According to the complaint, the defendants materially misrepresented Whitehall's financial results by: a) materially misstating the company's inventory and accounts payable; b) understating expenses because the company failed to write down inventory to its present fair market value and; c) improperly accounting for vendor allowances. The lawsuit contends that these false financial results caused Whitehall's stock to trade at artificially high prices during the Class Period.
On November 6, 2003, the company received a subpoena from the SEC as part of a formal investigation into a complaint that Whitehall and 13 other jewelry retailers helped a former supplier commit accounting fraud. Whitehall also announced it was the subject of a criminal investigation by the U.S. Attorney for the Eastern District of New York.
The company announced December 11, 2003 that it had fired its chief financial officer, Jon Browne, based on an internal investigation tied to the SEC probe. Whitehall also delayed the release of its third quarter financial results for the quarter ended October 31, 2003.
As a result, Whitehall's shares fell 7.6%, or $0.75, to close at $9.04 on December 11, 2003.
Then, on December 22, 2003, Whitehall announced that it would restate its financial results for fiscal 2000, 2001, 2002 and the first two quarters ended July 31, 2003. The restatement decreased Whitehall's earnings per diluted share by $0.01 for fiscal 2000; $0.03 for fiscal 2001; $0.02 for fiscal 2002; and decreased the loss by $0.01 for the six months period ended July 31, 2003, according to the complaint.
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 class action was filed in the U.S. District Court for the Northern District of Illinois. It seeks damages for violations of federal securities laws on behalf of all investors who bought Whitehall common stock from November 19, 2001 through and including December 10, 2003 (the "Class Period").
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission (SEC) Rule 10b-5.
The complaint names as defendants the company, Hugh M. Patinkin, the chairman, chief executive officer and president; Jon H. Browne, the former chief financial officer, treasurer and executive vice president, Matthew M. Patinkin, the executive vice president of operations; and John R. Desjardins, the interim chief financial officer and executive vice president of operations.
According to the complaint, the defendants materially misrepresented Whitehall's financial results by: a) materially misstating the company's inventory and accounts payable; b) understating expenses because the company failed to write down inventory to its present fair market value and; c) improperly accounting for vendor allowances. The lawsuit contends that these false financial results caused Whitehall's stock to trade at artificially high prices during the Class Period.
On November 6, 2003, the company received a subpoena from the SEC as part of a formal investigation into a complaint that Whitehall and 13 other jewelry retailers helped a former supplier commit accounting fraud. Whitehall also announced it was the subject of a criminal investigation by the U.S. Attorney for the Eastern District of New York.
The company announced December 11, 2003 that it had fired its chief financial officer, Jon Browne, based on an internal investigation tied to the SEC probe. Whitehall also delayed the release of its third quarter financial results for the quarter ended October 31, 2003.
As a result, Whitehall's shares fell 7.6%, or $0.75, to close at $9.04 on December 11, 2003.
Then, on December 22, 2003, Whitehall announced that it would restate its financial results for fiscal 2000, 2001, 2002 and the first two quarters ended July 31, 2003. The restatement decreased Whitehall's earnings per diluted share by $0.01 for fiscal 2000; $0.03 for fiscal 2001; $0.02 for fiscal 2002; and decreased the loss by $0.01 for the six months period ended July 31, 2003, according to the complaint.
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.
