Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/talbots/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Massachusetts on behalf of purchasers of the common stock of The Talbots, Inc. (“Talbots” or the “Company”) (NYSE:TLB) between December 8, 2009 and January 11, 2011, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, David J. George of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/talbots/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Talbots and certain of its officers and executives with violations of the Exchange Act. Talbots is a specialty retailer and direct marketer of women’s apparel, accessories and shoes that operates stores in the United States and Canada.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that: (i) notwithstanding defendants’ mantra about the Company being a great turnaround story, demand for the Company’s full-price inventory was extremely soft, which had resulted in the Company becoming saddled with excess inventory that could not be sold at full price; (ii) the Company could not keep pace with its competitors without turning to the dramatic and widespread promotional pricing that defendants had stated the Company would not have to resort to; and (iii) as a result of (i) and (ii) above, defendants knew that the profit and revenue numbers that they forecast to the market were illusory and unattainable.
On January 11, 2011, Talbots provided a Business Update and reported that quarter-to-date top line sales were down approximately 7% versus the fourth quarter of the prior year and the Company’s previously announced expectation for fourth quarter top-line sales in the range of flat to down low-single digits. Additionally, quarter-to-date comparable store sales were down approximately 6%. As a result of this news, the price of Talbots common stock dropped 17.4%, from a closing price $7.57 on January 10, 2011 to close at $6.25 on January 11, 2011, on almost six times the stock’s average daily trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of the common stock of Talbots during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.
David J. George
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