The Brualdi Law Firm P.C. Announces Class Action Lawsuit
Against NexCen Brands, Inc.
NEW YORK, May 30, 2008 (PRIME NEWSWIRE) — The Brualdi Law Firm P.C.
announced today that a class action lawsuit has been commenced in the
United States District Court for the Southern District of New York on
behalf of those investors who acquired the securities of NexCen Brands,
Inc. (NEXC) between May 10, 2007 and May 19, 2008.
No class has yet been certified in the above action. If you purchased
NexCen Brands, Inc. (NEXC) stock during the Class Period, you may be a
member of the proposed Class. You must move the Court on or before Jul
28, 2008 if you wish to serve as a lead plaintiff. In making your
decision, you should take into account that those with large financial
losses resulting from the alleged federal securities law violations are
given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time,
and you may retain counsel of your choice. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Tali Leger,
Director of Shareholder Relations at The Brualdi Law Firm P.C., 29
Broadway, Suite 2400, New York, New York 10006, by telephone toll free
at (877) 495-1877 or (212) 952-0602, by email to
[email protected] or visit our website at
During the class period, defendants issued a series of materially false
and misleading statements that misrepresented and failed to disclose:
(i) that the NexCen Brands, Inc. (the “Company”) was able to finance a
portion of the Great American Cookies acquisition by agreeing to an
accelerated-redemption feature, which would force the Company to pay
back half of its borrowing by a certain date; (ii) that the Company was
unable to comply with this accelerated-redemption feature, which would
reduce the amount of cash available to the Company; (iii) that the
Company had no reasonable basis for its earnings guidance for fiscal
2008; and (iv) as a result of the foregoing, the Company’s ability to
continue as a going concern was in serious doubt.
Then, on May 19, 2008, the Company announced that it “expects to amend
the company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2007.” The Company also stated that its prior financial
guidance for 2008 “is no longer applicable.” Moreover, the Company
revealed that it “is actively exploring all strategic alternatives to
enhance its liquidity, including potential capital market transactions,
the possible sale of one or more of its businesses, and discussions
with the company’s lender.”
Upon this news, shares of the Company’s stock fell $1.95 per share, or
77%, to close at $0.58 per share, on heavy trading volume.