BALA CYNWYD, Pa., March 28, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of Skechers USA, Inc. (NYSE:SKX) ("Skechers" or the "Company") from April 3, 2002 through December 9, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges that beginning in 2002, Skechers began assuming the role of distributor of its products in several international markets such as Spain, Italy, Portugal, the Benelux region, and Austria. Once unencumbered by a third party distributor, Sketchers was able to increase their profit margin on sales without moving any additional inventory.
Yet, this benefit was short-lived. While temporarily enjoying increased profits by reaping greater margins on sales, Skechers' overall merchandise sales ultimately began to slow and Skechers was forced to significantly reduce earnings accordingly. The market, unprepared for the temporary effect this role of distributor would have on earnings, was stunned once the Company, having recorded record revenue in the first and second quarter of 2002, began revising earnings and ultimately recorded a loss.
Even more alarming, while Skechers stock was soaring as a result of the market's favorable reaction to its increased profits, the Individual Defendants, knowing the truth about the Company's long-term outlook, sold off considerable personal holdings in the Company and reaped more than $42 million profit from stock sales during the Class Period.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than May 27, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca