Abbey Spanier Rodd & Abrams, LLP Files Class Action Lawsuit Against Tween Brands, Inc.
NEW YORK, Aug. 27 /PRNewswire/ -- Abbey Spanier Rodd & Abrams, LLP
commenced a Class Action lawsuit in the United States District Court for the
Southern District of Ohio (Index No. 07-CV-852) on behalf of a class (the
'Class') of all persons who purchased or acquired securities of Tween Brands,
Inc. ('Tween Brands' or the 'Company') (NYSE: TWB) between June 8, 2007 and
August 21, 2007 inclusive (the 'Class Period').
If you would like to discuss this action please contact Nancy Kaboolian at
nkaboolian@abbeyspanier.com.
The scheme alleged in the Complaint filed centers on false statements
regarding the Company's business beginning May 3, 2007 that allowed Michael
Rayden, the Company's Chief Executive Officer, to sell more than 68,000 shares
on June 8, 2007, at prices above $41 per share, for proceeds of over $2.8
million and more than 82,000 shares on June 11, 2007 at prices of $41 or
higher, for proceeds of over $3.3 million.
In May 2007 the Company announced positive earnings guidance for the
second quarter 2007 of $0.13 to $0.16 per share which the Company deemed
conservative, and earnings for fiscal 2007 of $2.15 to $2.25. The Company also
announced a resumption of the Company's share repurchase program up to $150
million over a two-year period beginning May 29, 2007. The market reacted
favorably to this share repurchase plan and other positive statements by
rising 2.9%.
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 knowingly or recklessly ignored these factors, and: (a) stated that
his 'conservative' outlook for the second quarter was for earnings of 13 to 16
cents per share: and (b) further caused the price of Tween Brands stock to be
inflated by issuing a press release announcing a $150 million stock buy-back.
Even though Rayden knew these statements were materially false and misleading,
he sold his shares, and failed to update or correct his misleading
pronouncements at any time during the second quarter.
None of the adverse facts were disclosed until August 22, 2007, when the
Company 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 wholly unexpected news the price of Tween Brands stock
dropped $11.00 from $38.59 to $27.59.
Plaintiff seeks to recover damages on behalf of all those who purchased or
otherwise acquired Tween Brands securities during the Class Period, which is
from June 8, 2007 and August 21, 2007. If you purchased or otherwise acquired
Tween Brands securities during the Class Period, and either lost money on the
transaction or still hold the securities, you may wish to join in the action
to serve as lead plaintiff. If you purchased Tween Brands securities during
the Class Period, you may, no later than October 23, 2007 request that the
Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's claim is typical
of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more class
members may together serve as 'lead plaintiffs.''
Abbey Spanier Rodd & Abrams, LLP has been retained as one of the law firms
to represent the Class. The attorneys at Abbey Spanier have extensive
experience in securities class action cases, and have played lead roles in
major cases resulting in the recovery of hundreds of billions of dollars to
investors. If you would like to discuss this action or if you have any
questions concerning this Notice or your rights as a potential class member or
lead plaintiff, you may contact:
Nancy Kaboolian, Esq. or
Susan Lee
Abbey Spanier Rodd & Abrams, LLP
212 East 39th Street
New York, New York 10016
(212) 889-3700
(800) 889-3701 (Toll Free)
Or e-mail them at slee@abbeyspanier.com or nkaboolian@abbeyspanier.com
SOURCE Abbey Spanier Rodd & Abrams, LLP
