Vans Named in Class Action Lawsuit

A class action lawsuit has been filed against Vans, Inc. in the United States District Court in California on behalf of the City of Dearborn Heights Act 345 Police & Fire Retirement System and purchasers of VANS common stock during the period between March 24, 1999 and May 23, 2002.
The complaint charges the company, along with CFO Andrew Greenbaum and CEO Gary Schoenfeld, with violations of the Securities Exchange Act of 1934.

The complaint alleges that beginning in 1998, Vans “posted” product to three separate Distribution Centers, including Unique Services, Pronto Services and Special Dispatcher, in order to inflate EPS on a quarterly basis. The suit claims that Vans knew, then attempted to get customers to take the goods that were in the DCs.
The suit also alleges that “literally millions of dollars” Vans' inventory was worth “a fraction of the value claimed”.

The complaint alleges that, as a result of the defendants' false statements, “Vans' stock price traded at inflated levels during the Class Period, increasing to as high as $24.59 on May 31, 2001, whereby the Company and its top officers and directors caused to be sold $60 million worth of Vans shares”.

The complaint was filed by tort king Milberg Weiss Bershad Hynes & Lerach LLP.

>>> These guys file these all the time and then look for clients to jump on board the class action… We’ll see what happens here…

Vans Named in Class Action Lawsuit

A class action lawsuit has been filed against Vans, Inc. in the United States District Court for the Central District of California on behalf of the City of Dearborn Heights Act 345 Police & Fire Retirement System and purchasers of VANS common stock during the period between March 24, 1999 and May 23, 2002.

The complaint filed by tort king Milberg Weiss Bershad Hynes & Lerach LLP charges the company, along with CFO Andrew Greenbaum and CEO Gary Schoenfeld, with violations of the Securities Exchange Act of 1934. Vans is a global sports-and-lifestyle company that merchandises, designs, sources and distributes VANS-branded active-casual and performance footwear, apparel and accessories.

The complaint alleges that beginning in 1998, defendants orchestrated a scheme wherein on a routine basis Vans “posted” product to three separate Distribution Centers, including Unique Services, Pronto Services and Special Dispatcher, in order to inflate EPS on a quarterly basis. This scheme took place each quarter, causing Vans' quarterly financial statements to be false. Moreover, defendants actively concealed that literally millions of dollars worth of Vans' valuable inventory was worth a fraction of the value claimed.

The complaint alleges that, as a result of the defendants' false statements, Vans' stock price traded at inflated levels during the Class Period, increasing to as high as $24.59 on May 31, 2001, whereby the Company and its top officers and directors caused to be sold $60 million worth of Vans shares.

The plaintiff seeks to recover damages on behalf of all purchasers of Vans common stock during the Class Period. The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

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