MINNEAPOLIS, June 11, 2008 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of NexCen Brands, Inc. ("NexCen" or the "Company") (Nasdaq:NEXC) publicly traded securities during the period May 10, 2007 through May 19, 2008 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before July 28, 2008. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that during the Class Period, Defendants issued a series of materially false and misleading statements that misrepresented and failed to disclose: 1) that the Company was able to finance a portion of the Great American Cookies acquisition by agreeing to an accelerated-redemption feature, which would force the Company to pay back half of its borrowing by a certain date; 2) that the Company was unable to comply with this accelerated-redemption feature, which would reduce the amount of cash available to the Company; 3) that the Company had no reasonable basis for its earnings guidance for fiscal 2008; and 4) as a result of the foregoing, the Company's ability to continue as a going concern was in serious doubt.
On May 19, 2008, the Company announced that it expected to amend its Form 10-K annual report for the year ended December 31, 2007 and that its prior financial guidance for 2008 was "no longer applicable." Upon this news, shares of NexCen's stock fell $1.95 per share, or 77%, to close at $0.58 per share.
If you purchased NexCen Brands, Inc. 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