NEW YORK, June 17, 2003 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the District of Massachusetts on behalf of all purchasers of The J. Jill Group, Inc. (``J. Jill'' or the ``Company'') (Nasdaq:JILL) common stock during the period from February 12, 2002 through December 4, 2002, inclusive (the ``Class Period'').
Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com/new_cases/JJill/JJill.htm or contact us by phone at (888) 529-4787 or by email at emui@kmslaw.com for more information.
The action charges J. Jill and certain of its senior officers with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the Class Period -- of artificially inflating theprice of J. Jill's shares.
The Complaint alleges that defendants issued a series of materially false and misleading statements concerning the Company's operations and financial results. In particular, the Complaint alleges that defendants' statements were materially false and misleading because defendants failed to disclose and misrepresented: (a) that the Company's same-store sales growth -- an operating metric that is important to investors in retailing stocks -- was declining during the Class Period as demand for the Company's products weakened; (b) that the Company was amassing a material amount of product that was of diminishing value and would have to be discounted in promotional campaigns, thereby causing the Company to experience declining financial results; (c) that the Company was not collecting taxes in certain States where it made Internet sales and also had a retail store. As a result, the Company was exposed to the heightened risk that it would be subject to regulatory scrutiny; and (d) as a result of the foregoing, defendants' earnings projections and positive statements about the Company were lacking in a reasonable basis and were therefore materially false and misleading.
On December 5, 2002, prior to the open of the market, J. Jill Group shocked the market by announcing that it was revising its earnings for the fourth quarter of 2002. The Company reported that it expected fourth quarter diluted earnings per share to range between $0.25 and $0.30. In response to this announcement, the price of J. Jill common stock declined from $23.01 per share to $16.52 per share, a decline of 28%, on extremely heavy volume. Prior to the end of the Class Period, J. Jill insiders sold more than $17 million of their personally-held stock to the unsuspecting public.
Kirby McInerney & Squire, 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 its 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 plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at http://www.kmslaw.com.
If you are a member of the class described above, you may, no later than July 14, 2003, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the ``PSLRA''), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, you can contact:
Ira M. Press, Esq. Elaine Mui KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: emui@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca