NEW YORK, Oct. 27 2004 LAWFUEL – Class action, lawsuit, law, legal, attorney news Zwerling, Schachter & Zwerling, LLP
(“Zwerling Schachter”) has filed a class action lawsuit in the United States
District Court for the Southern District of New York on behalf of all persons
and entities who purchased the common stock of Tommy Hilfiger Corporation
(“Tommy Hilfiger” or the “Company”) (NYSE: TOM) between November 3, 1999 and
September 24, 2004, inclusive (the “Class Period”). The deadline to file a
motion seeking to be appointed lead plaintiff is November 29, 2004.
If you wish to discuss this action or have any questions concerning your
rights and interests with respect to this securities litigation matter, please
contact Zwerling Schachter (Shaye J. Fuchs, Esq. or Jayne Nykolyn) at
1-800-721-3900 or by e-mail at sfuchs@zsz.com or jnykolyn@zsz.com.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically, it alleges that the defendants failed to disclose and
misrepresented the following material adverse facts which were known to
defendants or recklessly disregarded by them that: (a) the defendants shifted
profits to lower-tax jurisdictions by paying buying-agency commissions to
other Tommy Hilfiger subsidiaries; (b) the defendants reported revenue
generated in the U.S. as if it were earned in a foreign division, thereby
effectively lowering the Company’s tax rate; (c) as a result of this, Tommy
Hilfiger’s financial results were in violation of generally accepted
accounting principles; (d) the Company reported income tax liability had been
materially understated from at least 1999 because of its use of an improper
tax avoidance scheme; and (e) as a result of the above, Tommy Hilfiger’s
financial results were materially inflated at all relevant times.
On September 24, 2004, after the market closed, the Company announced that
its U.S. subsidiary, Tommy Hilfiger U.S.A. Inc. (“THUSA”), had received a
grand jury subpoena issued by the U.S. Attorney’s Office for the Southern
District of New York seeking documents generally relating to THUSA’s domestic
and/or international buying office commissions since 1990. On this news, the
Company’s stock dropped $2.87 per share or approximately 22% from a closing
price of $13.17 on September 24, 2004 to a closing price of $10.30 on
September 27, 2004, the next trading day.
If you purchased the common stock of Tommy Hilfiger between November 3,
1999 and September 24, 2004, you may apply to serve as lead plaintiff. The
lead plaintiff is responsible for overseeing the prosecution of the action and
ensuring that the interests of the class are protected. You may apply to be
appointed lead plaintiff through Zwerling Schachter.
Zwerling Schachter concentrates in prosecuting class actions nationwide on
behalf of investors. The firm currently plays a leading role in numerous
major securities and complex commercial litigations pending in federal and
state courts and has offices in New York City, Uniondale, New York, and
Seattle, Washington. The firm has been recognized by courts throughout the
country as highly experienced and skilled in complex litigation, particularly
with respect to federal securities class action litigation.
Web Site: http://www.zsz.com
