Footwear companies courting trouble
It’s not only Genesco that is facing a tough time from lawyers at the moment.
The same law firm — Coughlin Stoia Geller Rudman & Robbins LLP — that brought a case against the footwear retailer last week has now brought a class action suit against action sports related footwear, apparel, and equipment retailer Zumiez Inc., on behalf of purchasers of common stock in the company during the period between March 14 and November 7.
The complaint charges Zumiez with violations of the Securities Exchange Act of 1934, and alleges that the company issued materially false and misleading statements and failed to disclose that sales of the its winter merchandise were not performing according to internal expectations or that its retail stores were underperforming and same-store sales were in decline.
