Collective Brands, Inc. PSS Securities Stock Fraud

Company:	Collective Brands, Inc.
Ticker Symbol:	PSS
Class Period:	Dec-1-10 to May-24-12
Date Filed:	Jan-25-12
Lead Plaintiff Deadline:	Mar-25-12
Court:	District of Kansas
Allegations:

San Diego, CA: A securities class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Kansas on behalf of purchasers of Collective Brands, Inc. ("Collective Brands") (NYSE:PSS) common stock during the period between December 1, 2010 and May 24, 2011 (the "Class Period").

The complaint charges Collective Brands and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Collective Brands is the holding company for three lines of business: Payless ShoeSource ("Payless"), Collective Brands Performance + Lifestyle Group ("PLG"), and Collective Licensing. The Company was formerly known as Payless ShoeSource, Inc. and changed its name to Collective Brands in August 2007.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company' business and financial results. As a result of defendants' false statements, Collective Brands stock traded at artificially inflated prices during the Class Period, reaching a high of $23.44 per share on February 18, 2011.

On May 24, 2011, after the market closed, the Company announced its financial results for its first fiscal quarter ended April 30, 2011. The Company reported earnings of $26.4 million or $0.42 diluted earnings per share for the first quarter, which was nearly 50% less than the $0.82 diluted earnings per share expected by analysts. The Company further reported that net sales declined 1.1% to $869.0 million, due in substantial part to the Company' 7.4% comparable store sales decline in its Payless domestic segment, offset by sales growth of 22.5% in PLG. On this news, Collective Brands stock collapsed $3.06 per share to close at $15.31 per share on May 25, 2011, a one-day decline of nearly 17%.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company' inventory level for Payless remained at excessively high levels and aging inventory for its Payless segment was a concern; (b) sales at the Company' flagship Payless stores were significantly worse than expected due to deteriorating customer demand; and (c) the Company was forced to mark down Payless' bloated inventory at significant discounts, which adversely affected the Company' margins and financial results for its first quarter.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Collective Brands, Inc. PSS Securities Fraud Legal Help

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Published on Jan-26-12