NEW YORK, Sept. 27, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of Abercrombie & Fitch Company ("Abercrombie" or the "Company") (NYSE:ANF) acquiring the stock between May 17, 2005 and August 3, 2005, both dates inclusive (the "Class Period").
The action, entitled, Tayloe v. Abercrombie & Fitch Co., et al., Case No. 05-CV-(not yet assigned), is pending in the United States District Court for the Southern District of Ohio, and names as defendants, the Company, its Chief Executive Officer and Chairman, Michael S. Jeffries, its President and Chief Operating Officer, Robert S. Singer, and its Senior Vice President and Chief Financial Officer, Michael W. Kramer. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint charges defendants 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, during the Class Period, defendants touted the apparent strength of Abercrombie's business, which caused the Company's stock price to rise dramatically. Shortly after positive statements were issued by the Company, Abercrombie's Chairman and CEO sold substantial amounts of his personally held Abercrombie stock. Defendant Jeffries's Class Period stock sales were highly suspicious in both timing and amount. After defendant Jeffries sold 2,027,574 shares of Abercrombie stock for proceeds of $142,895,129, the Company announced, on August 4, 2005, weaker than expected sales for the month of July. Same store sales were reportedly up 22% over July 2004. This figure disappointed investors because, while the growth seemed impressive, in July 2004, the Company reported a 9% decline from July 2003, and July 2003 saw an 11% decline from July 2002. Accordingly, in reality, the Company's July 2005 sales were less than its sales from three years earlier. This announcement caused the price of Abercrombie stock to fall dramatically, from $70.03 per share on August 3, 2005 and to $65.36 per share on August 4, 2005, on unusually heavy trading volume.
If you are a member of the class described above, you may, not later than November 1, 2005, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact Wechsler Harwood LLP.