Two class actions have been filed against Generation Y marketer Delia’s Inc., New York, alleging that the company made misrepresentations that artificially inflated its stock price.
In a statement yesterday, Delia’s denied the accusations. It said that it “believes the lawsuits are without merit and intends to vigorously defend itself and litigate these claims.”
“Our case focuses on the fact that the company didn’t disclose how poorly it had done in the first quarter of 1998,” said Jeffrey S. Nobel, of Schatz & Nobel P.C., Hartford, CT, which filed one of the suits last week. “They made representations that didn’t disclose that information.”
Schatz & Nobel filed a complaint on behalf of all purchasers of Delia’s common stock from May 21, 1998 to June 17, 1998.
Both actions were filed in the U.S. District Court for the Southern District of New York, in Manhattan.
