Unhappy Shareholders Sue L.A. Gear: Disgruntled shareholders...
From Times Staff and Wire Reports
Unhappy Shareholders Sue L.A. Gear: Disgruntled shareholders filed 15 class-action lawsuits, alleging that the trendy footwear maker and its top officers violated federal securities laws by issuing false, favorable public statements designed to pump up the stock price. The suits, filed in federal court in Los Angeles, came the first business day after L.A. Gear stock plunged $8.50 per share, or 22%. The shares tumbled after the company announced that it will report its first quarterly drop in net income in three years.
