INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP ANNOUNCES SHAREHOLDER LAWSUIT AGAINST WET SEAL, INC. - WTSLA
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NEW YORK, NY—(PrimeZone)— August 27, 2004:
Murray, Frank & Sailer LLP announces that it filed a complaint in the Central District of California on behalf of all securities purchasers of The Wet Seal, Inc. (Nasdaq: WTSLA) ("Wet Seal" or the "Company") from January 7, 2004 through August 19, 2004 inclusive (the "Class Period").
The complaint charges Wet Seal, Peter D. Whitford, Joseph E. Deckop, and Irving Teitelbaum with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's strategic initiatives plan was not strengthening the Company's corporate standing. In fact, the Company's strategic initiatives plan was a complete and total disaster that was leading the Company into financial ruin; (2) that demand for the Company's products was based on deep-discounting and that without deep-discounting its products, demand for such was at an all time low; and (3) that as a result of the above, the Company's projections, outlooks, and positive statements, were lacking in any reasonable basis when made.
On August 19, 2004, Wet Seal, after the market closed, shocked the market by reporting that net loss from continuing operations of $3.20 per share for the second quarter ended July 31, 2004. Following this post-market announcement, shares of Wet Seal shed $1.25 per share, or 59.52 percent, to close at $0.85 per share on unusually high trading volume on August 20, 2004.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Wet Seal between January 7, 2004 through August 19, 2004, inclusive, and sustained damages, you may, no later than October 25, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
MURRAY, FRANK & SAILER
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]