Aeropostale Can't Shake Investors' Stock Drop Action

Law360, New York (March 27, 2013, 5:38 PM ET) -- A New York federal judge on Tuesday denied Aeropostale Inc.'s bid to drop a class action that accuses the clothing retailer of defrauding investors by hiding woes over unpopular inventory and slow sales.

U.S. District Judge Colleen McMahon ruled that the city of Providence, R.I., had sufficiently alleged that Aeropostale should have notified shareholders that a switch to a more mature style of product by former CEO Mindy Meads in 2010 turned into an inventory crisis that sent a shock through sales for months.

The suit...
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