This lawsuit is for investors who purchased the common stock of American Apparel, Inc. (AMEX: APP) between December 20, 2006 and August 17, 2010.
The lawsuit alleges that the Company and certain of its executives violated federal laws. Specifically, the lawsuit alleges that throughout the above mentioned period the Company misled investors to believe that the Company was more profitable than it actually was by failing to disclose that a significant amount of its workforce were illegal workers. In July 2009 the Company announced that U.S. Immigration officials were investigating it for hiring illegal workers but continued to mislead investors on the impact the the Company's hiring practices would have on its profitability.
Finally, on August 17, 2010, the Company reported a huge loss on its second quarter earnings report stating that the loss was as a result of "reduced labor efficiency", which the Company defined as having to hire and train 1,600 inexperienced legal workers to replace its illegal workforce, but which also probably means having to pay the greater costs associated with having a legal workforce. The Company also announced, for the first time, that as a result of its workforce problems it was in jeopardy of going out of business. On this news, shares of the Company's stock plummeted.
The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you purchased common stock of American Apparel, Inc. (AMEX: APP) between December 20, 2006 and August 17, 2010 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.
Case Summary
Join the Class Action
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I, the Plaintiff, certify that:
1. I have reviewed the Complaint and authorized its filing.
2. Plaintiff did not purchase the security that is the subject of this
action, at the direction of plaintiff's counsel or in order to
participate in any private action arising under this title.
3. I am willing to serve as a representative party on behalf of a class
and will testify at deposition and trial, if necessary.
4. My transactions in the securities, which are the subject of this
action, during the Class Period set forth in the Complaint are as
5. I have not served as a representative party on behalf of a class
under the federal security laws during the last three years, except
if detailed below.
6. I will not accept any payment for serving as a representative party,
except to receive my pro rata share of any recovery or as ordered
or approved by the court including the award to a representative
plaintiff of reasonable costs and expenses (including lost wages)
directly relating to the representation of the class.
Terms:
correct statements.
agreement and retain the Law Offices of Howard G. Smith and its associates to proceed on Plaintiff's behalf, on a contingent fee basis. If I am executing this agreement on behalf of an institution, I further certify that I am authorized to execute this agreement on behalf of the institution.
