NEW YORK, Aug. 24, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates has commenced a Class Action lawsuit in the United States District Court for the Southern District of Ohio on behalf of a class (the "Class") of all persons who purchased or acquired securities of Tween Brands, Inc. ("Tween Brands" or the "Company") (NYSE:TWB) from June 8, 2007 through August 21, 2007 (the "Class Period"), alleging violations of the federal securities laws.
For further information you may call toll free, 1-800-347-1236, or contact counsel by e-mail by writing to rjacobs@jacobsclasslaw.com.
In May 2007 the Company announced positive earnings guidance for the second quarter 2007 of $0.13 to $0.16 per share which the Company deemed conservative, and earnings for fiscal 2007 of $2.15 to $2.25. The Company also announced a resumption of the Company's share repurchase program up to $150 million over a two year period beginning May 29, 2007. The market reacted favorably to this share repurchase plan and other positive statements by rising 2.9%.
On June 8, 2007 Chief Executive Michael Rayden sold over 68,000 shares for proceeds of over $2.8 million. On June 11, 2007 Rayden sold over 82,000 additional shares for proceeds of over 3.3 million.
As alleged in the Complaint, Tween Brands' financial performance was not as robust as expected, and was not meeting the guidance previously announced in May. While the Company had purchased approximately 1.6 million of its own shares in the first quarter of 2007, based on the information currently available, it purchased only approximately 40,000 of its own shares in the second quarter, indicating that there was no confidence in the guidance previously disseminated.
None of the adverse facts were disclosed until August 22, 2007, when the Company revealed that the Company's financial performance during the second quarter had been weak, plagued by a decline in retail traffic, lower store transactions and other factors which appear to have been apparent during the quarter. The Company announced that quarterly earnings would be only $0.07 per share. The Company was also forced to revise downward its prior guidance for fiscal 2007. On this wholly unexpected news the price of Tween Brand stock dropped $11.00 from $38.59 to $27.59 and has not substantially recovered.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Tween Brands securities during the Class Period, which is from June 8, 2007 through August 21, 2007. If you purchased Tween Brands securities during the Class Period, you may qualify to serve as Lead Plaintiff. You are not required to have sold your Tween Brands securities order to claim damages, or to serve in this role. This case will be prosecuted on a contingent fee basis. All motions for appointment as Lead Plaintiff must be filed with the Court by October 23, 2007.
If 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.
You may also join this action by visiting our website at http://www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca