HARTFORD, Conn., Sept. 19, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard 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 Central District of California on behalf of all persons who purchased the common stock of LJ International, Inc. ("LJ") (Nasdaq:JADE) between February 15, 2007 and September 6, 2007, inclusive (the "Class Period").
The Complaint charges that LJ and certain of its officers and directors violated federal securities law. Specifically, defendants concealed the following facts: (i) defendants had understated LJ's fiscal 2005 and 2006 tax liability and overstated the Company's earnings and EPS prior to and during the Class Period; (ii) revenues in LJ's wholesale division had softened during the Class Period; (iii) defendants made materially false and misleading representations regarding the Company's ability to report the earnings required to facilitate meeting its stated goal of growing its Chinese stores to 100 in advance of the 2008 Beijing Olympics; and (iv) the Company did not have the financial controls in place to accurately report financial results or to provide meaningful forward guidance during the Class Period.
On July 16, 2007, the Company announced that it was delaying the release of its fourth quarter 2006 through second quarter 2007 financial results because the Company's new auditors were unable to sign off on the Company's accounting. Then on September 6, 2007, LJ disclosed that it had not achieved the fourth quarter and fiscal 2006 financial results it had previously provided on January 8, 2007, and upgraded on February 15, 2007, due to a "potential tax provision," and that its fiscal 2006 earnings report of $3 million would "likely be adversely impacted."
If you are a member of the class, you may, no later than November 19, 2007, 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 Izard P.C. 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 Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.