Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Zale Corporation, Announces Class Action Lawsuit and Seeks to Recover Losses

November 9, 2009 7:30 PM EST

LOS ANGELES--(BUSINESS WIRE)-- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Northern District of Texas on behalf of a class consisting of all persons or entities who purchased the securities of Zale Corporation ("Zale" or the "Company") (NYSE: ZLC) between November 16, 2006 and October 29, 2009, inclusive (the "Class Period").

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.

The Complaint charges Zale and certain of the Company's executive officers with violations of federal securities laws. Zale is a specialty retailer of fine jewelry in North America. The Complaint alleges that throughout the Class Period the defendants knew or recklessly disregarded that their public statements concerning Zale's business, operations and prospects were materially false and misleading. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company improperly recorded certain advertising costs as prepaid advertising rather than recording the cost as an expense; (2) that the Company improperly accounted for intercompany accounts receivable associated with its wholly owned insurance subsidiaries; (3) that, as a result, the Company's financial results were overstated during the Class Period; (4) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

On October 29, 2009, the Company filed its Annual Report with the United States Securities and Exchange Commission (the "SEC") for the fiscal year ended July 31, 2009, containing restated financial information for fiscal 2008, 2009, and prior periods, to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes. Therein, Zale further disclosed that the SEC is investigating the accounting issues that led the Company to restate its earnings for 2008 and 2009. As a result of this news, shares of Zale declined $1.66 per share, nearly 26%, to close on October 30, 2009, at $4.73 per share, on unusually heavy volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than 60 days from the date of this Notice, to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.

    Source: Glancy Binkow & Goldberg LLP

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