Judge Dismisses Suit by Wet Seal Shareholders

Wet Seal Inc. said a judge had dismissed a class-action lawsuit brought by shareholders.

U.S. District Judge Gary Feess in Los Angeles granted a motion to dismiss all the defendants in the suit, Foothill Ranch-based Wet Seal said. The judge said the plaintiffs might file an amended complaint, due Nov. 10.

Wet Seal said in February that the Securities and Exchange Commission had started an informal investigation into the sale of stock in 2004 by La Senza Corp. Montreal-based La Senza sold $15.4 million in Wet Seal stock July 23, 2004, a week before the beginning of a slide in stock prices that erased 85% of Wet Seal’s share value and prompted the shareholders’ suit.