The Shareholders Foundation announces that an investor in NYSE:PSS shares filed a lawsuit in the U.S. District Court for the District of Kansas against Collective Brands Inc. over alleged Violations of Federal Securities Laws in connection with its first fiscal quarter results.
Investors who purchased shares of Collective Brands Inc. (Public, NYSE:PSS) have certain options and for certain NYSE:PSS stockholders are strict deadlines running. Deadline: March 26, 2012. NYSE: PSS investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Collective Brands Inc. (Public, NYSE:PSS) common stock during the period between December 1, 2010 and May 24, 2011, that Collective Brands Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding Collective Brands business and financial results and as a result NYSE:PSS shares traded at artificially inflated prices between December 1, 2010 and May 24, 2011, reaching a high of $23.44 per share on February 18, 2011.
Collective Brands Inc. reported a decrease in its 52week Total Revenue from $3.44billion for a 52weeks period ending on Jan. 31, 2009 to $3.37billion for a 52weeks period ending on Jan. 29, 2011. However, Collective Brands Inc. reported that its Net Income over the same time frames increased from a Net Loss of $68.00million to a Net Income of $112.80million.
Shares of Collective Brands Inc. (Public, NYSE:PSS) rose in light of those financial conditions from as low as $4.73 per share in November ’08 to as high as $25.99 in April 2010.
During the first months in 2011 NYSE PSS shares traded above $20 per share and on March 2, 2011, Collective Brands, Inc. announced its fourth quarter and full year results for fiscal 2010, which ended January 29, 2011. Among other things, Collective Brands, Inc also reaffirmed its long term guidance.
However, then on May 24, 2011, after the market closed, Collective Brands Inc announced its financial results for its first fiscal quarter ended April 30, 2011. The plaintiff alleges that Collective Brands Inc reported earnings of $26.4 million or $0.42 diluted earnings per share for the first quarter, which was nearly 50% less than the $0.82 diluted earnings per share expected by analysts. Collective Brands Inc further reported that net sales declined 1.1% to $869.0 million, due in substantial part to the Company’s 7.4% comparable store sales decline in its Payless domestic segment, offset by sales growth of 22.5% in PLG.
On June 15, 2011, Collective Brands Inc announced that its Chairman of the Board, director, and an officer of Collective Brands Matthew Rubel would resign effective immediately.
NYSE: PSS stocks fell from over $18 per share on May 20, 2011 to as low as $9.51 per share in August.
Since then NYSE:PSS shares have regained value and traded recently as above $16 per share.
Those who purchased shares of Collective Brands Inc. (Public, NYSE:PSS) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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