San Diego, CA -- (SBWIRE) -- 10/07/2013 -- An investor, who purchased shares of Francesca's Holdings Corp (NASDAQ:FRAN), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Francesca's Holdings Corp in connection with certain allegedly false and misleading statements made between March 20, 2013 and September 3, 2013

Investors who purchased shares of Francesca's Holdings Corp (NASDAQ:FRAN) have certain options and for certain investors are short and strict deadlines running. Deadline: November 26, 2013. NASDAQ:FRAN investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Francesca's Holdings Corp (NASDAQ:FRAN) between March 20, 2013 and September 3, 2013, that Francesca's Holdings Corp and certain of its officers and directors violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that the defendants between March 20, 2013 and September 3, 2013 failed to disclose that unseasonably rainy and cold spring and summer weather had diminished the mall traffic Francesca’s relied upon to drive same-store sales growth, that a competitive back-to-school retail environment weighed on same-store sales growth, that same-store sales were declining, forcing Francesca’s to rely upon new store openings to increase sales, that Francesca's Holdings Corp had been forced to engage in promotional selling at significant discounts during its first quarter 2013 in order to meet its financial targets, that Francesca's Holdings Corp had been forced to increase promotional activity during the second quarter of 2013, that Francesca’s concealed the impact sales terms and margins with its suppliers would have on its ability to maintain above-average profit margins, and that, as a result, Francesca's Holdings Corp was not on track to achieve the financial results defendants had led the market to expect between March 20, 2013 and September 3, 2013.

The plaintiff claims that as a result of defendants’ false and misleading statements between March 20, 2013 and September 3, 2013, certain company insiders were able to sell hundreds of millions of dollars of Francesca’s stock at artificially inflated prices.

Francesca's Holdings Corp reported that its Total Revenue rose from $79.37 million for the 52 weeks period that ended on Jan. 30, 2010 to $296.37 million for the 53 weeks period that ended on Feb. 2, 2013, and that its respective Net Income increased from $10.60 million to $47.06 million. On June. 5, 2013, Francesca's Holdings Corp reported its first fiscal quarter 2013 results. Francesca's Holdings said that its net income for the first quarter of 2013 increased to $10.9 million, compared to net income for the first quarter of 2012 of $8.7 million, and that Net sales for the thirteen weeks increased 29% to $79.0 million, compared to net sales for the first quarter of 2012 of $61.32 million

Then on September 4, 2013, Francesca's Holdings Corp reported its second quarter 2013 financial results. The Company also announced the board of directors authorized a $100 million share repurchase program.

Shares of Francesca's Holdings Corp declined from $24.00 per share on September 3, 2013, to $17.74 per share on September 4, 2013.

The plaintiff seeks to recover damages on behalf of all purchasers of Francesca’s common stock d March 20, 2013 and September 3, 2013.

On Oct. 4 2013, NASDAQ:FRAN shares closed at $18.52 per share.

Those who purchased shares of Francesca's Holdings Corp have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com