Judge Dismisses Wet Seal Shareholder Suit
Foothill Ranch, Calif., Apparel retailer The Wet Seal Inc. on Thursday said a judge dismissed a class-action lawsuit alleging securities fraud by the company and several of its former directors and officers.
The U.S. District Court of Central California found that alleged misstatements made by Wet Seal were “forward-looking statements” protected by the Private Securities Litigation Reform Act’s safe harbor. The judge said the plaintiffs have until Nov. 10 to file an amended complaint.
From August to October last year, shareholders filed six class-action lawsuits, which were later consolidated, against the company and certain officers, alleging they hid or misrepresented negative information about Wet Seal’s financial standing.