Judge Dismisses Wet Seal Shareholder Suit
Foothill Ranch, Calif., Apparel retailer The Wet Seal Inc. on Thursday said a judge dismissed a class-action lawsuit alleging securities fraud by the company and several of its former directors and officers.
The U.S. District Court of Central California found that alleged misstatements made by Wet Seal were “forward-looking statements” protected by the Private Securities Litigation Reform Act’s safe harbor. The judge said the plaintiffs have until Nov. 10 to file an amended complaint.
From August to October last year, shareholders filed six class-action lawsuits, which were later consolidated, against the company and certain officers, alleging they hid or misrepresented negative information about Wet Seal’s financial standing.
TJX President Resigns
Framingham, Mass., Edmond (Ted) English announced his resignation Tuesday as president and CEO of TJX Cos., effective immediately. English, who has been with TJX for 23 years, has served as CEO since 2000. Bernard Cammarata, the chairman and former CEO of TJX, was named acting president. English will advise the company while it searches for a permanent replacement.
“While sales and segment profit at Marmaxx, our largest business, have experienced strong growth, our other businesses have not met expectations over the past year, despite actions taken to improve their performance,” English said in a statement. “These businesses would benefit from a fresh perspective at the top.”
Safeway Partners With EPA to Buy “Green” Energy
Pleasanton, Calif., Safeway announced it will purchase renewable energy to power its 270 fuel stations, 15 stores in San Francisco and corporate campuses in Pleasanton and Walnut Creek, Calif. The deal, arranged through with the Environmental Protection Agency, makes Safeway one of the largest buyers of green energy in the United States. The supermarket retailer has agreed to purchase 78 million kilowatt hours of electricity generated from wind energy.