Oct. 31, 2009 (Business Wire) -- Law Offices of Howard G. Smith announces that it is investigating potential claims against Zale Corporation (“Zale” or the “Company”) (NYSE: ZLC), concerning possible securities violations in relation to public statements made by the Company between November 16, 2006 and October 29, 2009. The investigation focuses on allegations that statements made by the Company during that period were false and misleading in light of the Company’s disclosure that Zale’s previously issued financial statements for fiscal years 2008 and 2007, and interim periods therein, contain errors and should no longer be relied upon.

On October 29, 2009, the Company filed its Annual Report with the United States Securities and Exchange Commission (the “SEC”) for the fiscal year ended July 31, 2009, containing restated financial information for fiscal 2008 and 2009 to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes and personal property taxes. Therein, Zale further disclosed that the SEC is investigating the accounting issues that led the Company to restate its 2008 and 2009 earnings.

On this news, shares of Zale declined $1.66 per share, nearly 26%, to close on October 30, 2009, at $4.73 per share, on unusually heavy volume.

If you purchased Zale common stock between November 16, 2006 and October 29, 2009, or if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to Howardsmith@Howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.