Morgan & Morgan Announces That a Class Action Lawsuit Has Been Filed Against Movado Group, Inc. -- MOV
February 19 2015 - 10:26AM
Morgan & Morgan announces that a class action lawsuit has been
filed in the United States District Court for the District of New
Jersey on behalf of all persons or entities that purchased the
common stock of Movado Group, Inc. ("Movado" or the "Company")
(NYSE:MOV) between March 26, 2014 and November 13, 2014, inclusive
(the "Class Period"), alleging violations of the Securities
Exchange Act of 1934 against the Company and certain of its
officers.
If you purchased Movado during the Class Period, you may, no
later than April 6, 2015, request that the Court appoint you lead
plaintiff of the proposed class. A lead plaintiff is a
representative party that acts on behalf of all class members in
directing the litigation. Any member of the purported class may
move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class
member.
If you want more information about the Movado Shareholder Class
Action, contact Morgan & Morgan at 1(800) 732-5200 or email
info@morgansecuritieslaw.com
Movado designs, sources, markets and distributes fine watches.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements extolling the
purportedly positive business prospects and powerful growth
expected for the Company's flagship Movado brand as well as its
portfolio of licensed brands, which includes Scuderia Ferrari and
Lacoste watches. The complaint also alleges that Defendants misled
investors about their plan to boost the Movado brand by using the
shelf space of one of the Company's other brands at various
retailers. The complaint alleges that as a result of defendants'
materially false and misleading statements and omissions, Movado
common stock traded at artificially inflated prices during the
Class Period, reaching a high of $46.39 per share and allowing the
Company's Chairman and CEO to sell over $8.6 million worth of his
Movado shares at these inflated prices.
On November 14, 2014, Movado issued a press release announcing
disappointing third quarter financial results and reducing the
Company's financial guidelines for its 2015 fiscal year (ending
January 31, 2015). Specifically, the Company reported that: (i) it
expected third quarter earnings in a range of $0.86 to $0.87 per
share, far less than analysts' estimates of $1.13 per share; (ii)
it expected net sales between $188.6 million to $189.7 million for
the third quarter, well below the consensus estimate of $218.32
million; (iii) certain brands, including Movado, Scuderia Ferrari
and Lacoste, had not performed as well as expected; and (iv) as a
result, the Company would be reducing its fiscal year 2015
guidance. In contrast to the sales growth of 11% and operating
income growth of 19% touted throughout the Class Period, defendants
now stated they expected sales growth of only 1% to 2% and a
reduction in operating profit of 7% to 10% compared to fiscal 2014.
Following this news, the price of Movado stock declined, falling
from $38.51 per share to $26.25 per share, a decline of nearly
32%.
About Morgan & Morgan
Morgan & Morgan is one of the nation's largest 200 law
firms. In addition to shareholder rights, the firm also practices
in the areas of antitrust, personal injury, consumer protection,
overtime, and product liability. All of the Firm's legal
endeavors are rooted in its core mission: provide investor and
consumer protection and always fight "for the people."
Attorney advertising. Prior results do not guarantee a
similar outcome.
CONTACT: Morgan & Morgan
Peter Safirstein, Esq.
28 West 44th Street
Suite 2001
New York, NY 10036
1-800-732-5200
info@morgansecuritieslaw.com
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