Kendall Law Group, led by a former federal judge and former US Attorney, announces a shareholder investigation of Zale Corporation (NYSE: ZLC) for possible securities violations concerning admitted errors in their public statements affecting stock purchased between November 16, 2006 and October 29, 2009.
On October 29, 2009, Zale filed its Annual Report for the fiscal year ended July 31, 2009. This report contained restated financial information for fiscal 2008 and 2009, which reflected accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes and personal property taxes. The report also disclosed that the United States Securities Exchange Commission is investigating the accounting issues that relate to the restatement of the 2008 and 2009 earnings.
In response to this announcement, Zale shares dropped nearly 26% by $1.66 per share, closing at $4.73 per share on October 30, 2009, on unusually heavy volume.
