Zale Corporation Hit With Class Action

Law360, New York (August 16, 2006, 12:00 AM EDT) -- A class action suit levied at fine jewelry retailer Zale and some of its officers and directors on Tuesday claims that some of the company’s financial documents may not be as real as its diamonds.

The complaint alleges that during the period between Feb. 18, 2005 and May 5, 2006, the defendants issued materially false and misleading statements regarding the company’s business and financial results.

Because of these statements, Zale’s stock was traded at artificially inflated prices, reaching a high of $34.42 per share in August...
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