HARTFORD, Conn., July 25, 2006 (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 District of Maryland on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Jos. A. Bank Clothiers, Inc. (the "Company") (Nasdaq:JOSB) between January 5, 2006 and June 7, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose the following: (i) the Company had overinvested in inventories of fall clothing, building excessive levels of in-stock inventories of seasonal merchandise that carried over into the first quarter of 2006; (ii) that the Company resorted to very aggressive promotional pricing in February and March 2006 which deeply discounted the prices of the merchandise in order to move the merchandise and make room for new seasonal merchandise; and (iii) the Company's gross profit margins were substantially reduced in February and March 2006 by reason of the inventory and pricing actions taken by defendants which caused the Company's profit margins and profits in February and March 2006 to shrink dramatically even as sales revenues increased, which represented an extreme departure from Jos. A. Bank's historical pattern.
On June 8, 2006, defendants announced that net income for the first quarter of 2006 had fallen 13% even as sales revenues increased 18%. On this news, the Company's common stock fell 29%, dropping $10.72 to close at $26.40 per share on June 8, 2006.
If you are a member of the class, you may, no later than September 25, 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.