HARTFORD, Conn., Aug. 30, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of Ohio on behalf of all persons who purchased or otherwise acquired the securities of Tween Brands, Inc. ("Tween Brands") (NYSE:TWB) between June 8, 2007 and August 21, 2007 inclusive (the "Class Period").
The Complaint charges that Tween Brands and its Chief Executive Officer Michael Rayden violated federal securities laws. Specifically, the Complaint alleges that even though Rayden knew that consumer demand had fallen materially, that rents and marketing costs were ballooning, and that schools had pushed the beginning of the school year later into the summer, he ignored these factors, and: (i) stated that his "conservative" outlook for the second quarter was for earnings of 13 to 16 cents per share; and (ii) further caused the price of Tween Brands stock to be inflated by issuing a press release announcing a $150 million stock buy-back.
On August 22, 2007, Tween Brands revealed that the Company's financial performance during the second quarter had been weak, plagued by a decline in retail traffic, lower store transactions and other factors which appear to have been apparent during the quarter. The Company announced that quarterly earnings would be only $0.07 per share. The Company was also forced to revise downward its prior guidance for fiscal 2007. On this news, the price of Tween Brands stock dropped $11.00 from $38.59 to $27.59.
If you are a member of the class, you may, no later than October 23, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.