Friedman’s To Pay $2 Million Settlement
Washington, Friedman’s will pay $2 million into the U.S. Postal Inspection Service’s Consumer Fraud Fund to settle allegations of securities fraud, federal regulators said today.
The Securities and Exchange Commission alleged in a statement that Friedman’s, which filed Chapter 11 in January, “systematically inflated earnings to meet Wall Street’s expectations” from 2001 to 2003.
GameStop Has Tough 3Q
Grapevine, Texas, GameStop Corp. reported a net loss of $2.5 million in the third quarter, which includes $18.8 million in expenses related to the retailer’s merger with Electronics Boutique. That compares with net earnings of $12.1 million in the year-ago period.
Sales for the third quarter grew 28.2% to $534.2 million despite a 12% decline in same-store sales.