Whitehall Jewellers Responds To Lawsuit

Whitehall Jewellers responded to the lawsuit filed against it last week, saying it is without merit. A shareholder has filed a securities fraud lawsuit against the company accusing it and some of its officers of artificially boosting the company's stock price.

Whitehall Jewellers confirmed that a securities fraud action was filed against it and some of its officers in the U.S. District Court for the Northern District of Illinois.

In a statement the company issued following the filing its says, “We believe the allegations contained in the lawsuit are without merit. Whitehall Jewellers intends to defend itself vigorously against these and any subsequent 'copycat' lawsuits”.

The lawsuit claims the defendants caused the specialty retailer's shares to trade at artificially inflated levels by issuing false and misleading financial statements.