NEW YORK, May 30, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announced today that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of those investors who acquired the securities of NexCen Brands, Inc. (NEXC) between May 10, 2007 and May 19, 2008.
No class has yet been certified in the above action. If you purchased NexCen Brands, Inc. (NEXC) stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before Jul 28, 2008 if you wish to serve as a lead plaintiff. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm P.C., 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
During the class period, defendants issued a series of materially false and misleading statements that misrepresented and failed to disclose: (i) that the NexCen Brands, Inc. (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; (ii) that the Company was unable to comply with this accelerated-redemption feature, which would reduce the amount of cash available to the Company; (iii) that the Company had no reasonable basis for its earnings guidance for fiscal 2008; and (iv) as a result of the foregoing, the Company's ability to continue as a going concern was in serious doubt.
Then, on May 19, 2008, the Company announced that it "expects to amend the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007." The Company also stated that its prior financial guidance for 2008 "is no longer applicable." Moreover, the Company revealed that it "is actively exploring all strategic alternatives to enhance its liquidity, including potential capital market transactions, the possible sale of one or more of its businesses, and discussions with the company's lender."
Upon this news, shares of the Company's stock fell $1.95 per share, or 77%, to close at $0.58 per share, on heavy trading volume.