DALLAS, April 20, 2005 (PRIMEZONE) -- The law firm of Baron & Budd, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of Sharper Image Corporation (Nasdaq:SHRP)("Sharper Image" or the "Company") securities during the period between February 5, 2004 and August 4, 2004, inclusive (the "Class Period").
The Complaint alleges that Sharper Image Corporation violated federal securities laws by issuing false or misleading information about the Company's financial condition and that the Company failed to disclose and misrepresented the following material adverse facts which were known or recklessly disregarded by defendants. Specifically, the Complaint alleges: (1) rather than increasing sales, the Company's businesses were diverting sales from the Company's retail and infomercial sales; (2) a drastic slow down in sales of Sharper Image's key product, the Ionic Breeze family of air purifiers, was adversely affecting the Company's profitability; (3) the Company's margins associated with the Ionic Breeze family of products were seriously impacted by the additional costs of the defendants attempts to acquire additional blocks of time for infomercials that had already been acquired as a result of the Olympics and the Presidential election; and (4) as a result, the Company's second quarter 2004 projections of earnings per share of $0.09-$0.11 were grossly overstated.
On August 5, 2004, Sharper Image announced that Q2 2004 results would be worse than previously represented, with EPS of only $0.03-$0.05 as opposed to representations of $0.09-$0.11. The market reacted negatively to this news, and the Company's shares fell sharply to $19.24, down 23.77% from a previous closing price at $25.49.
If you acquired the securities of Sharper Image Corporation during the Class Period and meet certain legal requirements, you may, no later than June 17, 2005, move for appointment as lead plaintiff on behalf of the proposed class.
If you are a member of this class and would like to take action in this suit, please visit Baron & Budd online www.securitiesactions.com. Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff's bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit www.baronandbudd.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.