Kirby McInerney LLP Announces Class Action Lawsuit On Behalf of Crocs Inc. Investors

Kirby McInerney LLP announces that it has filed a class action lawsuit in the United States District Court for the District of Colorado on behalf of all persons who purchased or otherwise acquired the publicly traded securities of CROCS Inc. (NasdaqGS:CROX) between July 27, 2007 and October 31, 2007.
Author:
Updated:
Original:

NEW YORK, Nov. 16, 2007 -- Kirby McInerney LLP announces that it has filed a class action lawsuit in the United States District Court for the District of Colorado on behalf of all persons who purchased or otherwise acquired the publicly traded securities of CROCS Inc. (``CROCS'' or the ``Company'') (NasdaqGS:CROX) between July 27, 2007 and October 31, 2007, inclusive, (the ``Class Period'').

The complaint charges CROCS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CROCS and its subsidiaries design, develop and manufacture consumer products from specialty resins worldwide. The Company offers footwear for men, women and children under the ``CROCS'' brand.

According to the complaint, during the Class Period, Defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company was experiencing significant distribution problems in Europe as it had moved distribution facilities and was experiencing distribution problems in Japan with a third-party distributor, causing the Company to lose tens of millions of dollars in sales; (ii) that the Company's sales were being negatively impacted by seasonal conditions as consumers reduced purchases of the Company's products in cold weather climates; (iii) that the Company's inventory levels were building far beyond historic levels as sales began to slow and the Company's sales began to be impacted by seasonality; and (iv) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its earnings and prospects.

On October 31, 2007, CROCS issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. Following the earnings announcements, CROCS held a conference call for analysts and investors. During the call, Defendants discussed problems at its European and Japanese distribution centers and its growing inventory, among other things. In response to these announcements, the price of CROCS stock declined from $74.75 per share to $47.74 per share on extremely heavy trading volume. In the period leading up to this shocking announcement, CROCS insiders took advantage of the artificially inflated prices to sell 963,162 shares for proceeds of $58,666,141.

If you are a member of the class, you may, no later than January 7, 2008, request that the Court appoint you as lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs can participate in important decisions which could affect the recovery for class members.

If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact us, toll free, at (888) 529 4787 or by email at info.newcases@kmllp.com

Kirby McInerney LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiffs in a securities class action can be obtained through Kirby McInerney LLP's website at http://www.kmllp.com

More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca

Related

Crocs and Skechers Announce Settlement of Litigation

NIWOT, Colo.--Crocs, Inc. (NASDAQ:CROX) and Skechers, Inc. (NYSE:SKX) today announced that they have agreed to settle all outstanding worldwide litigation, including a US District Court action in Colorado. The lawsuits concern Crocs' proprietary footwear and allege that Skechers ...read more

Bally shareholder class-action lawsuit still pending, hearings set

A court hearing has been set for the pending shareholder class-action lawsuit against Bally Total Fitness Holding Corp., but no other action has been taken since shareholders began filing federal class action complaints in late May. The complaints were in response to Bally (NYSE: ...read more

Outdoor financials: Gander Mountain securities class action lawsuit dismissed, plus Russell, adidas/Reebok

Gander Mountain securities class action lawsuit dismissed On Jan. 17, Gander Mountain (Nasdaq: GMTN) said the U.S. District Court for the District of Minnesota has dismissed in its entirety and with prejudice the consolidated securities class action complaint filed against the ...read more

Columbia Sportswear Company Announces Settlement of Lawsuit Against Crocs

PORTLAND, Ore.--Columbia Sportswear Company (Nasdaq:COLM), a leading innovator in active outdoor apparel, footwear, accessories and equipment, announced today that it has resolved its pending claims against Crocs, Inc. (Nasdaq:CROX) in Multnomah County Circuit Court in Portland, ...read more

Fitness financials: Court dismisses Bally class action lawsuit, plus Life Time Fitness, Brunswick, Winmark, Sara Lee

Court dismisses Bally's class action lawsuit for alleged securities fraudBally Total Fitness (NYSE: BFT) said the U.S. District Court, Northern District of Illinois, dismissed a consolidated class action against the company and certain of its current and former officers for ...read more

The Coleman Company, Inc. Files Patent Infringement Lawsuit

The Coleman Company, Inc., an international leader in the innovation and marketing of outdoor products, announced today that it has filed a patent infringement lawsuit against Exxel Outdoors, Inc., in the United States District Court for the Eastern District of Texas, a court ...read more

Crocs, Inc. Awarded Multiple Patents for Utility and Design of Footwear Products

NIWOT, Colo.-- April 3, 2006--Crocs, Inc. (NASDAQ: CROX) today announced it has received four patents covering various aspects of its footwear. The patents, which cover utility aspects applicable to a number of its footwear models and design elements of its Beach(TM), Cayman, ...read more

Fitness financial: Dick’s settles class action lawsuits

Dick’s settles class action lawsuits Dick's Sporting Goods (NYSE: DKS) said it has agreed to pay up to $15 million to settle various class action lawsuits that had alleged a failure to pay overtime and other promised wages. The settlement will result in a pretax charge of about ...read more

Bally faces shareholder class-action suit after revenue restatement

Bally Total Fitness Holding Corp. is facing an investigation by the U.S. Securities and Exchange Commission and a shareholder class-action lawsuit after issuing a restatement of its revenues since 1997 when it released its 2003 results on March 11, 2004. As of June 3, 10 law ...read more