USA: Class Action Lawsuit Filed Against Charlotte Russe
Law firm Schiffrin & Barroway LLP has filed a class action lawsuit against women's clothing retailer Charlotte Russe Holding Inc accusing it of "unfounded" predictions of its results for the 2004 financial year.
The allegation, made on behalf of all securities purchasers of Charlotte Russe, accuses the company of failing to disclose that the repositioning of its Rampage stores was not generating concrete results and that other measures intended to boost operations were proving unsuccessful.
Charlotte Russe on 6 December said that because of worse-than-expected sales for the quarter so far it was predicting that same-store sales would fall by mid to high single digits in the first quarter of fiscal 2005, ended on 25 December 2004.
A previous forecast had predicted low single digit comparable sales growth for the quarter.
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