Robbins Umeda LLP Announces an Investigation of Body Central Corporation
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Body Central Corporation (NASDAQ: BODY). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda is investigating whether officers and directors of Body Central breached their fiduciary duties and caused damage to the company and its shareholders by issuing materially false and misleading statements concerning the company’s business health. Beginning on November 11, 2011, and continuing through March 8, 2012, certain officers of Body Central repeatedly issued positive financial statements and touted the company’s business prospects. These officers provided aggressive full-year earnings guidance ranging between $1.46 and $1.50 per share.
Then, on May 3, 2012, Body Central issued a press release announcing its first quarter 2012 financial results. In this press release, the company unexpectedly issued a weak forecast for second quarter 2012 and full-year earnings. In particular, the company projected second quarter earnings between $0.26 and $0.28 and full-year earnings of $1.34 to $1.38 per share, both below the company’s previous guidance and analyst expectations. On this news, Body Central’s stock lost 48% of its value, falling $14.04 per share, to close at $14.88 per share on May 4, 2012. Moreover, on June 18, 2012, Body Central issued a press release stating that the company was revising the predictions it made in its May 3, 2012 press release, anticipating second quarter sales and gross margin to be lower than originally expected. Following this news, Body Central stock fell $7.77 per share from a closing price of $15.99 on June 15, 2012, to close at $8.22 per share on June 18, 2012.
Robbins Umeda LLP highlights that Body Central shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.