Body Central Corp (NASDAQ:BODY) Investor Files Securities Class Action Lawsuit Over Alleged False and Misleading Statements
Aug. 28, 2012 (Shareholders Foundation) -- An investor in shares of Body Central Corp (NASDAQ:BODY) filed a lawsuit in the U.S. District Court for the Middle District of Florida against Body Central Corp (NASDAQ:BODY) over alleges violations of securities laws in connection with certain financial statements.
According to the complaint the plaintiff alleges on on behalf of purchasers of Body Central Corp (NASDAQ:BODY) common stock during the period between November 10, 2011 and June 18, 2012, that Body Central Corp and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding the Company's financials and future business prospects.
Specifically, so the plaintiff, defendants allegedly misrepresented and/or failed to disclose adverse facts concerning what defendants described as a "merchandise miss," as well as the poor operating and financial performance of the Company's stores and as a result of defendants' statements, which included statements regarding the Company's 2012 financial outlook, Body Central common stock (NASDAQ:BODY) traded at artificially inflated prices between November 10, 2011 and June 18, 2012, reaching a high of $30.69 per share on April 27, 2012.
Then on May 3, 2012, after the market closed, Body Central Corp (NASDAQ:BODY) announced its first quarter 2012 financial results, on June 18, 2012, Body Central Corp revised its guidance for the second quarter and full year, and then on August 6, 2012, NASDAQ:BODY shares closed at $8.14 per share, substantially below its current 52 week High of $30.93 per share.
NASDAQ:BODY stocks dropped from as high as $30.69 per share on April 27, 2012, to $14.879 on May 4, 2012 and then to as low as $8.22 per share on June 18, 2012.
On August 28, 2012, NASDAQ:BODY shares closed at $8.78 per share.