SAN DIEGO, Sept. 3, 2004 (PRIMEZONE) -- The Law Firm of Robbins Umeda & Fink, LLP announces that it has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of purchasers of the securities of The Wet Seal, Inc. (Nasdaq:WTSLA) ("Wet Seal" or the "Company") between January 9, 2003 and August 19, 2004, inclusive (the "Class Period"). If you are a member of this class, you can join this class action online at http://www.ruflaw.com/join.html or by calling (800) 350-6003.
The complaint charges Wet Seal, Peter D. Whitford, William B. Langsdorf, Douglas C. Felderman, Irving Teitelbaum and La Senza Corporation 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 was hemorrhaging cash at a material rate requiring that the Company liquidate its stores, close stores and/or file for protection under the United States bankruptcy laws; (2) that Teitelbaum and La Senza's claims for the divestiture of Wet Seal shares was not motivated by streaming La Senza, but rather because the two had inside knowledge that the Company's accounting was false, the projections were unattainable and that the Company's new 2004 back to school line was a disaster; 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.
On August 19, 2004, Wet Seal, after the market closed, shocked the market by reporting 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 bought the securities of Wet Seal between January 9, 2003 and August 19, 2004, you may qualify to serve as lead plaintiff in this action. If you wish to serve as lead plaintiff, you must move the Court no later than October 25, 2004.
Robbins Umeda & Fink, LLP has significant experience prosecuting class actions on behalf of investors. If you wish to discuss this action, please call or e-mail the Firm at:
ROBBINS UMEDA & FINK, LLP Amanda Aguirre Shareholder Relations 1010 Second Ave., Suite 2360 San Diego, CA 92101 Toll Free: (800) 350-6003 E-mail: aguirre@ruflaw.com