COLCHESTER, Conn., Dec. 21, 2009 (GLOBE NEWSWIRE) -- Scott+Scott is investigating potential legal claims available to shareholders of Zale Corporation (NYSE:ZLC) related to recently disclosed deficiencies in the Company's financial reporting.
If you currently own Zale stock purchased between November 12, 2007 and October 29, 2009 and would like additional information regarding this investigation or if you have information regarding the allegations against the company, please contact Scott+Scott at (800) 704-6694. There is no cost or fee to you.
Zale Corporation, headquartered in Irving, Texas, operates as a specialty retailer of fine jewelry. As of July 31, 2009, the Company operated 1,247 specialty retail jewelry stores and 684 kiosks throughout the United States, Canada and Puerto Rico. Founded in 1989, the Company has a history of providing quality financial results and steady growth.
However, on October 29, 2009, Zale issued its 2009 Annual Report, reporting a net loss for the year of $189.5 million. The Company also reported that, during 2009, the Zale shuttered 191 locations, of which 160 were fine jewelry stores and 31 were kiosks. Most importantly, in the Annual Report, Zale restated financial information for fiscal years 2007 and 2008 to correct the Company's accounting for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes. As a result of the restatement, Zale dramatically reduced its reported earnings for the period. The cumulative impact of the adjustments totaled $35.4 million -- $32.2 million after taxes. Zale reported that the misstated financials were the result of material weaknesses in the Company's accounting controls.
Subsequent to the Zale's disclosure that it would restate its financial statements, the Securities and Exchange Commission notified the Company that it had begun an investigation and requested records related to the restatement. In addition, several class action lawsuits alleging securities violations have been initiated on behalf of purchasers of Zale stock seeking recovery from Zale and certain of the Company's officers for the losses they have suffered by acquiring the Company's stock at allegedly inflated prices.
Scott+Scott possesses significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and is currently litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.