Robbins geller rudman & dowd llp files class action suit against
movado group, inc.
San diego--(business wire)--robbins geller rudman & dowd llp (“robbins geller”) (http://www.rgrdlaw.com/cases/movado/) today announced that a class action has been commenced in the united states district court for the district of new jersey on behalf of purchasers of movado group, inc. (“movado”) (nyse:mov) common stock during the period between march 26, 2014 and november 13, 2014 (the “class period”). if you wish to serve as lead plaintiff, you must move the court no later than 60 days from today. if you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, darren robbins of robbins geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. if you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/movado/. any member of the putative 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. 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 touting the purportedly attractive business prospects and strong growth expected for the company’s flagship movado brand as well as its portfolio of licensed brands, which includes lacoste and scuderia ferrari watches. defendants also materially misled investors regarding their initiative to boost the movado brand by cannibalizing one of the company’s other brand’s shelf space at various retailers. 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 artificially inflated prices. then, on november 14, 2014, movado issued a press release preliminarily announcing disappointing third quarter financial results and lowering the company’s financial outlook 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, lacoste, and scuderia ferrari, had not performed as well as expected; and (iv) as a result, the company would be lowering its fiscal year 2015 guidance. in contrast to the sales growth of 11% and operating income growth of 19% discussed throughout the class period, defendants now expected sales growth of only 1% to 2% and a decrease 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%. plaintiff seeks to recover damages on behalf of all purchasers of movado common stock during the class period (the “class”). the plaintiff is represented by robbins geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. robbins geller, with 200 lawyers in ten offices, represents u.s. and international institutional investors in contingency-based securities and corporate litigation. the firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. please visit http://www.rgrdlaw.com for more information.
