New Class Action Lawsuit Filed Against Whitehall Jewellers
February 24, 04
Lawyers representing a group of shareholders of Whitehall Jewellers filed a class action lawsuit against the company on Monday – the sixth lawsuit filed so far this month.
The latest suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission and was filed in the U.S. District Court for the Northern District of Illinois.
Specifically, the complaint alleges that during the Class Period, the defendants caused Whitehall's shares to trade at artificially inflated levels through the issue of false and misleading financial statements.
As a result, defendants were able to complete an insider trading scheme, raising proceeds of $5.3 million, the suit charges. The other lawsuits are similar in nature.
Whitehall responded to a lawsuit filed against it earlier in February, saying it was without merit and that it intended to defend itself vigorously against these and any subsequent 'copycat' lawsuits.