Clothestime Shareholders File Suit: Two shareholders of...

Clothestime Shareholders File Suit: Two shareholders of Clothestime Inc. have filed a lawsuit in federal court in Los Angeles alleging that the company’s officers and directors made misleading statements about the company’s financial position in an effort to inflate its stock price. The suit alleges that between April 17, 1989, and Sept. 19, 1990, the Anaheim-based retailer gave out “materially false and misleading” statements concerning finances, business prospects, results from operations, marketing techniques and merchandise. The shareholders, Fairmont Financial Corp. and Lepow Equities Corp., filed the suit Nov. 21 and are seeking class-action status. Clothestime officials said they had not yet seen the lawsuit, but denied the broad allegations.