Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Aeropostale, Inc. (“Aeropostale”) and certain of its officers and directors violated the Securities Exchange Act 1940. Aeropostale operates a mall-based specialty retailer of casual apparel and accessories. It designs, markets and sells merchandise principally targeted to 14-17 young men and women.
For over 35 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of common stock of Aeropostale, Inc. (NYSE: ARO) between February 3, 2011 and April 3, 2011 and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than December 12, 2011 to discuss your rights, including as to recovery of your losses or to obtain additional information.
Misleading Sales Forecasts
A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Aeropostale. Aeropostale repeatedly assure investors on numerous occasions that the Company was well positioned to meet their financial goals for 2011.
Failure to Disclose Information
The Complaint alleges that Aeropostale and certain of its officers and directors failed to disclose material information to the investing public concerning their business and prospects. Aeropostale allegedly failed to disclose that they were experiencing declining demand for its women’s fashion division, which makes up 70% of the Company’s sales. The suit further alleges that in response to declining consumer demand and lack of balance in their merchandise assortments, as well as continued promotional and macroeconomical challenges, Aeropostale significantly increased the breadth and depth of their promotions and markdowns which resulted in lower than expected sales and gross margins for the second quarter. As a result, Defendants lacked a reasonable basis for their positive statements about the Company and operations.
Artificially Inflated Stock Prices
Aeropostale’s misleading sales projections in combination with its failure to disclose negative business trends and decreased consumer demand, lead to artificially inflated prices during the Class Period. On August 4, 2011, Aeropostale issued a press release providing a business update for the second quarter of 2011 which was well below expected returns. As a result of this news, shares of Aeropostale dropped $3.99, or 24%, to close at $12.53 per share.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Aeropostale’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please visit www.investment-losses.com or CALL TOLL FREE (888) 252-0048.