San Diego, CA -- (ReleaseWire) -- 02/24/2012 -- The Shareholders Foundation announces that a settlement in a lawsuit filed on behalf of certain NYSE:CRI investors was proposed.
Investors who purchased Carter's, Inc. (NYSE:CRI) shares, between March 16, 2005 through November 10, 2009, and investors who purchased prior to March 2005 and still hold any of those CRI shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
In November 2009 a lawsuit was filed by investors alleging Carter's and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The plaintiffs alleged that Carter's statements and filings between March 16, 2005 through November 10, 2009 were allegedly materially false and misleading.
In September 2011 the parties entered into mediation and in December 2011 a motion for preliminary approval of partial class settlement was filed. Pursuant to the proposed settlement several defendants agreed to pay $20million to end the lawsuit. The settlement still needs final approval by the judge.
Meanwhile certain directors at Carter's, Inc. still face another lawsuit recently filed by a current long term investor in NYSE: CRI shares. The plaintiff alleges that between 2004 and 2009 former Executive Vice President of Sales at children's clothing marketer Carter's Inc. allegedly manipulated the amount of discounts Carter's granted its largest wholesale customer in order to induce it to purchase greater quantities of Carter's products. He allegedly then concealed his actions by persuading the customer to defer subtracting the discounts from payments until later financial reporting periods. The plaintiff claims that certain directors caused Carter’s Inc to publicly issue false financial results by improperly reporting millions of dollars in margin support payment to major wholesale customers in incorrect periods and as a result the defendants caused Carter’s to improperly recognize revenue on millions of dollars of product sold via wholesale customers.
Carter’s later had to restate its historical financial statements for the fiscal years 2004-2008 and in late 2010 the U.S. Securities and Exchange Commission charged the former Executive Vice President of Sales of Carter's, Inc for allegedly engaging in financial fraud and insider trading.
Those who purchased Carter's, Inc. (NYSE:CRI), including those who purchased CRI shares as early as 2005 or 2004 and currently hold those NYSE CRI shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North
San Diego, CA 92108