Federman & Sherwood Investigates Signet Jewelers Ltd. for Possible Violations of Federal Securities Laws
Oklahoma City, OK (June 9, 2016) – The law firm of Federman & Sherwood has initiated an investigation on behalf of investors of Signet Jewelers Ltd. ("Signet" or the “Company”) [NYSE: SIG]. The investigation concerns whether Signet and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On June 2, 2016, James Grant's investment newsletter issued a report raising concerns about the extent to which Signet used its credit operations to boost sales, and also referenced a previously published story on Buzzfeed about customers complaining that their diamonds had been unknowingly replaced with lesser-quality gems by Signet's Kay Jewelers stores.
On June 6, 2016, Seeking Alpha published an article about Signet noting that Kay Jewelers, a subsidiary of Signet, has tarnished its reputation through a spate of diamond replacement allegations in which employees, while repairing jewelry, would remove a client’s diamond and replace it with a cheaper gem. Seeking Alpha noted that “reputation is everything” in the jewelry business. In addition, Signet has taken on an increasing number of bad loans, shaking the markets confidence in the company’s future
On this news, Signet stock fell as much as $13.90, or 14%, to a low of $84.35 during intraday trading on June 6, 2016. In addition, Signet shares have dropped 42% from their all-time high on October 30, 2015.
If you currently securities in Signet Jewelers Ltd., have any information to assist in our investigation, or have questions or concerns regarding this notice or your rights or interests in this matter, you may contact William B. Federman with any questions you may have regarding this investigation. Or you may complete the Certification of Investment by clicking InvestCertSIG.pdf to download and complete the Certification. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases across the country.
Posted on Thu, June 9, 2016
by Robin Hester filed under