HARTFORD, Conn., Nov. 23, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Texas on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Helen of Troy, Ltd. (Nasdaq:HELE) ("Helen of Troy" or the "Company") between October 12, 2004, and October 10, 2005, inclusive (the "Class Period").
The Complaint alleges Defendants violated federal securities laws by issuing a series of materially false statements. Specifically, Defendants engaged in a scheme to defraud shareholders through the issuance of positive earnings guidance intended to artificially inflate Company stock for which their was no legitimate support. Guidance for 2006 was announced as part of the fiscal third quarter of 2005 results, the inflation of which mislead the investing public. Immediately following this increase in the stock price to its class period high, Defendant Rubin sold almost 400,000 shares at its peak price of $33.00 per share, netting proceeds of almost $13 million. On October 11, 2005, Helen of Troy substantially lowered its unattainable guidance for 2006 and reported a year over year decline in revenues during its second quarter. On this news, the stock lost 21%, falling to $15.55 per share.
If you are a member of the class, you may, no later than January 23, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.