Lawfuel – The Law Newswire – HARTFORD, Conn., June 5, 2007 — The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Macy’s Inc. (formerly known as Federated Department Stores, Inc.) (“Macy’s”) (now (NYSE:M) — formerly (NYSE:FD)) between February 8, 2007 and May 15, 2007, inclusive (the “Class Period”).
The Complaint charges Macy’s and certain of its officers and directors
violated Federal Securities laws. Macy’s, the second-largest U.S.
department store franchise, operates more than 850 department stores
under the names of Macy’s and Bloomingdale’s. Macy’s acquired May
Department Stores Co. (“May”) in 2005 for $11 billion. The Complaint
alleges that Defendants caused Macy’s shares to trade at artificially
inflated levels by concealing that the May integration was actually
failing, sales growth was diminishing, the Company’s business had
deteriorated, and as a result, its sales projections were grossly
overstated. Defendants’ positive statements had their intended effect
and the Company’s stock price reached a Class Period high of $46.70 by
March 23, 2007.
The Complaint further alleges that Macy’s stock price plummeted between
May 10, 2007 and May 15, 2007, as the Company disclosed that customers
of the former May stores had actually rejected the rapid conversion,
that sales at the Company’s new Macy’s stores had declined during the
first quarter of 2007, and that in particular, the Company’s decision
to dramatically cut the number of days coupons could be used at the
former May locations had badly damaged sales. On this news, the
Company’s stock price fell nearly 18% from its Class Period high.
If you are a member of the class, you may, no later than August 3,
2007, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members,
including decisions concerning settlement. The securities laws require
the Court to consider the class member(s) with the largest financial
interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard, P.C. toll-free at
(800) 797-5499, or by e-mail at [email protected], or visit our website:
CONTACT: Schatz Nobel Izard, P.C.
Wayne T. Boulton
Nancy A. Kulesa
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