NEW YORK, Jan. 13, 2006 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Western District of Texas on behalf of shareholders who purchased or otherwise acquired the securities of Helen of Troy, Ltd. ("Helen of Troy" or the "Company") (Nasdaq:HELE) between October 12, 2004, through October 10, 2005, inclusive (the "Class Period"). Helen of Troy, Gerald J. Rubin, and Thomas J. Benson are named as defendants.
Helen of Troy designs, develops, produces, and distributes personal care and household consumer products. The complaint charges Helen of Troy and certain of its officers and directors with violations of the Securities Exchange Act of 1934, and alleges that throughout the Class Period defendants made materially false and misleading statements to the investing public regarding its financial performance and prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The complaint alleges that defendants engaged in a scheme to defraud shareholders and cause the Company's stock to be artificially inflated through the issuance of statements misrepresenting the Company's business performance and the issuance of positive earnings guidance for which their was no reasonable basis. Coinciding with the price inflation, defendant Rubin sold 393,350 shares of his personally held shares of the Company's common stock near its peak price of $33.00 per share resulting in net proceeds of almost $13 million. On October 11, 2005, the Company 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 dropped 21%, falling to $15.55 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted their practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Helen of Troy securities on any exchange between October 12, 2004, through October 10, 2005, and sustained damages, you may, no later than January 23, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.