MINNEAPOLIS, Sept. 14, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Northern District of Texas on behalf of all persons who purchased the stock of Heelys, Inc. ("Heelys") (Nasdaq:HLYS) issued pursuant or traceable to the Registration Statement filed with the Securities and Exchange Commission by Heelys in connection with the Company's December 2006 initial public stock offering ("IPO").
The Complaint charges that Heelys, a company that designs, markets and distributes wheeled footwear, and certain of its officers and directors violated federal securities laws. Specifically, the complaint alleges that the Registration Statement used by defendants in connection with the IPO was misleading in that it represented that Heelys had a viable, well-established business plan and that its tremendous revenue growth and resulting profits were based on sound business and stable sales practices. Moreover, the Registration Statement failed to disclose the staggering number of injuries suffered by Heelys' users in the months leading up to the IPO. The Company and certain of its senior executives and directors sold $155 million worth of Heelys stock at $21 per share in the IPO.
On August 8, 2007, following the issuance of product safety warnings by the Consumer Product Safety Commission and other industry safety groups that affected the shoe's marketability, defendants were forced to significantly downgrade the Company's revenue and earnings guidance for the second half of 2007, admitting that retailers were sitting on huge unsold inventory and refusing to place additional orders. On this news, the Company's stock price fell 45%.
If you are a member of the class, you may, no later than October 26, 2007, request that the Court appoint you as lead plaintiff of the class. Your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff.
If you purchased Heelys securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca