Rigrodsky
& Long, P.A. announces that a class action lawsuit has been
filed in the United States District Court for the District of Kansas on
behalf of purchasers the common stock of Collective Brands, Inc.
("Collective Brands" or the "Company") (NYSE: PSS)
between December 1, 2010 and May 24, 2011, inclusive (the "Class
Period"), alleging violations of the Securities Exchange Act of 1934
(the "Complaint") against the Company and certain of its officers and/or
directors.
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact Timothy
J. MacFall, Esquire or Scott
J. Farrell, Esquire of Rigrodsky & Long, P.A., 825 East Gate
Boulevard, Suite 300, Garden City, New York 11530 at (888) 969-4242, by
e-mail to info@rigrodskylong.com,
or at: http://www.rigrodskylong.com/investigations/collective-brands-inc-pss.
Collective Brands was formed in 2007 when Payless ShoeSource acquired
the Collective Brands Performance + Lifestyle Group (formerly the Stride
Rite Corporation) and Collective Licensing International. The Complaint
alleges that during the Class Period, Collective Brands and certain of
the Company's directors and/or officers made materially false and
misleading statements concerning its business and financial results.
Specifically, it is alleged that defendants concealed from the investing
public problems concerning the Company's inventory level for Payless;
significantly lower sales at the Company's flagship Payless stores than
expected due to deteriorating customer demand; and that the Company was
forced to mark down Payless's inventory at significant discounts, which
negatively affected the Company's margins and financial results for its
first quarter.
On May 24, 2011, the Company disclosed its financial results for its
first fiscal quarter ended April 30, 2011. As alleged in the Complaint,
the Company reported earnings of $26.4 million or $0.42 diluted earnings
per share ("EPS") for the first quarter, which was nearly 50% less than
the $0.82 diluted EPS expected by analysts. The Company also reported
that net sales declined 1.1% to $869.0 million, due in substantial part
to the Company's 7.4% comparable store sales decline in its Payless
Domestic segment. As a result, the price of Collective Brands common
stock dropped $3.06 per share to close at $15.31 per share on May 25,
2011, a decline of approximately 17% on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later
than March 26, 2012. A lead plaintiff is a representative party acting
on behalf of other class members in directing the litigation. In order
to be appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Your ability to
share in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. Any member of the proposed class
may move the court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky
& Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder
rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware
Court of Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar outcome.
