According to the complaint, Signet is purportedly the world’s largest retailer of diamond jewelry. The company claims to operate thousands of stores in North America, and some in the United Kingdom, through well-known brand names such as “Kay,” “Jared,” “Zales,” and “Peoples Jewellers.”
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the company was experiencing difficulty ensuring the safety of customer’s jewelry while in the custody of Signet’s brands; (2) that employees at stores under at least one of Signet’s brands (Kay) were swapping customers’ stones for less valuable stones; (3) that the company was experiencing a drop-off in customer confidence; (4) that the company was facing increasing competitive pressures; (5) that, as result of the foregoing, the company’s financial performance was being negatively impacted; and (6) that, as a result of the foregoing, the defendants’ positive statements about Signet’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
According to the complaint, on May 25, 2016, BuzzFeed News reported on the seemingly wide-spread occurrences of diamond swapping in connection with the company’s Kay stores. Then, on May 26, 2016, the company issued a press release announcing its first quarter fiscal year 2017 financial results. Therein, the company disclosed that its same store sales for the period fell below the company’s previously issued first quarter 2017 guidance. The company also disclosed that it was lowering its fiscal year 2017 same store sales growth guidance.
Following this news, Signet’s stock price fell $11.37 per share, or 10.5%, to close at $97.00 per share on May 26, 2016, on unusually heavy trading volume.
On June 3, 2016, the company issued a press release entitled, wherein the company appeared to confirm the existence of instances of “diamond swapping” at the company’s stores. Following this news, Signet’s stock price fell $4.04 per share, or 4.3%, to close at $88.19 per share on June 3, 2016.
If you are a member of the class described above, you may no later than October 24, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
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