Class Action Lawsuit Filed Against Friedman's

A class action lawsuit was filed in the Northern District of Georgia on behalf of all persons who purchased the publicly traded securities of Friedman's from January 26, 2000 through November 17, 2003. Friedman's, the third biggest jewelry retailer in the United States, is facing a barrage trouble recently.

 

The law firm Berger & Montague, P.C. alleges that Friedman's and some of its officers and directors issued “materially false and misleading statements during the class period concerning the Company's financial results” adding “…defendants failed to disclose that Friedman's had understated its allowance for doubtful accounts and credit losses.”   

The law firm also accuses the company of artificially inflating its operating results during the class period.

A month ago, on November 17, Friedman's said it would restate its financial statements for fiscal years 2000, 2001 and 2002 and for the first three quarters of fiscal year 2003.

Following the news share price dropped to $6.07 on the following day, down from $17.50 during the class period.

The law firm is calling on shareholders to contact them, saying its seeking to recover damages on behalf of their clients.

Friedman’s CEO, Robert Cruickshank, has quit his post last week and the CFO Victor Suglia was put on leave after fraud charges started to be investigated by the SEC.

The company announced Monday the nomination of Richard Cartoon to the post of CFO effective immediately.