NEW YORK, Nov. 16, 2007 (PRIME NEWSWIRE) -- Kirby McInerney LLP announces that it has filed a class action lawsuit in the United States District Court for the District of Colorado on behalf of all persons who purchased or otherwise acquired the publicly traded securities of CROCS Inc. ("CROCS" or the "Company") (Nasdaq:CROX) between July 27, 2007 and October 31, 2007, inclusive, (the "Class Period").
The complaint charges CROCS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CROCS and its subsidiaries design, develop and manufacture consumer products from specialty resins worldwide. The Company offers footwear for men, women and children under the "CROCS" brand.
According to the complaint, during the Class Period, Defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company was experiencing significant distribution problems in Europe as it had moved distribution facilities and was experiencing distribution problems in Japan with a third-party distributor, causing the Company to lose tens of millions of dollars in sales; (ii) that the Company's sales were being negatively impacted by seasonal conditions as consumers reduced purchases of the Company's products in cold weather climates; (iii) that the Company's inventory levels were building far beyond historic levels as sales began to slow and the Company's sales began to be impacted by seasonality; and (iv) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its earnings and prospects.
On October 31, 2007, CROCS issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. Following the earnings announcements, CROCS held a conference call for analysts and investors. During the call, Defendants discussed problems at its European and Japanese distribution centers and its growing inventory, among other things. In response to these announcements, the price of CROCS stock declined from $74.75 per share to $47.74 per share on extremely heavy trading volume. In the period leading up to this shocking announcement, CROCS insiders took advantage of the artificially inflated prices to sell 963,162 shares for proceeds of $58,666,141.
If you are a member of the class, you may, no later than January 7, 2008, request that the Court appoint you as lead plaintiff of the class. 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 can participate in important decisions which could affect the recovery for class members.
If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact us, toll free, at (888) 529 4787 or by email at info.newcases@kmllp.com
Kirby McInerney LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiffs in a securities class action can be obtained through Kirby McInerney LLP's website at http://www.kmllp.com
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