SHAREHOLDER ALERT: Gainey McKenna & Egleston Reminds Investors of Class Action Against Movado Group, Inc. and a Lead Plaintif...
March 27 2015 - 7:00PM
Gainey McKenna & Egleston 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 securities 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 (the "Complaint").
The complaint charges Movado and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Movado, one of the world's leading watchmakers, 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. On this news, the price of Movado stock declined, falling
from $38.51 per share to $26.25 per share, a decline of nearly
32%.
If you wish to serve as lead plaintiff, you must move the Court
no later than April 6, 2015. A lead plaintiff
is a representative party acting on behalf of other class members
in directing the litigation. If you wish to join the
litigation, or to discuss your rights or interests regarding this
class action, please contact Thomas J. McKenna, Esq. or Gregory M.
Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300,
or via e-mail at tjmckenna@gme-law.com or
gegleston@gme-law.com.
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