NEW YORK, Aug. 14, 2006 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the District of Maryland on behalf of all purchasers of Jos. A. Bank Clothiers, Inc. ("Jos. A. Bank" or the "Company") (Nasdaq:JOSB) common stock between January 5, 2006 and June 7, 2006, inclusive, (the "Class Period").
Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com or contact us by phone at (888) 529-4787 or by email at info.newcases@kmslaw.com for more information.
If you purchased Jos. A. Bank stock during the Class Period, and wish to serve as lead plaintiff, you must move the Court no later than September 25, 2006. Any member of the purported class may move the Court to serve as lead plaintiffs through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Ira M. Press, Esq. of Kirby McInerney & Squire, LLP at 888-529-4787, or via email at ipress@kmslaw.com.
The lawsuit 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca