NEW YORK, Aug. 9, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities violations regarding the sale, on or about June 18, 2007, of over 2 million Citi Trend shares in a secondary offering by certain large Citi Trends Inc. shareholders ("Citi Trends" or the "Company") (Nasdaq:CTRN) including executive management.
Now, shortly after this sale, the Company has announced that second quarter net income will be well below analysts' estimates due to lower margins and higher expenses. As of a result of this news, the market price of Citi Trends shares has dropped over $8.50, or 24% on greatly increased volume. Purchasers of Citi Trends shares in the secondary offering paid over $37.00 per share, and now are suffering large losses on those transactions.
If you purchased Citi Trends shares in the secondary offering and you wish to discuss this matter or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.