HARTFORD, Conn., Sept. 1, 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 Southern District of Florida on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Parlux Fragrances, Inc. ("Parlux" or "the Company") (Nasdaq:PARL) between February 8, 2006 and August 10, 2006, inclusive, (the "Class Period").
The Complaint alleges that Parlux and certain of its officers and directors violated federal securities laws by issuing a series of materially false statements. Specifically, defendants' highly positive statements created the impression that Parlux's revenues were growing and that the Company was well positioned to generate strong profits. Beginning in June 2006, the truth about the Company's declining sales and accounting issues was revealed in a series of disclosures indicating that: (i) Parlux's sales were declining materially, including sales to related parties; and (ii) Parlux suffered from internal control issues with respect to its financial reporting, causing the Company to delay filing its Annual Report on Form 10-K for the year ended March 31, 2006, and to delay its quarterly report on Form 10-Q for the quarter ending June 30, 2006. During the Class Period, while Parlux stock traded at over $37 per share (prior to a stock split), defendants and Company insiders sold over $13 million worth of their Parlux holdings.
On August 10, 2006, the Company announced that Parlux's profit for the quarter ended June 30, 2006 would be far less than investors had been led to believe, due mainly to lower sales to U.S. department stores and related parties. On this news, Parlux stock plunged from $8.16 a share to $4.78, a drop of over 40%.
If you are a member of the class, you may, no later than October 16, 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.