Rant Sports Parent Closes $3M Round Of VC KKR Withdraws IMG Bid Bornstein, Shapiro Advising Competing Bids For IMG CAA Out Of Hunt For IMG Disney Reports Higher Q4 Earnings Second Round Of Bids For IMG Were Due Thursday Adidas' Q3 Operating Profit, Sales Drop 21st Century Fox Revenues Exceed Forecasts SMI Sees Ticket Sales Decrease In Q3 Chime Communications Buys JMI For $76M
NO SMILEY HAPPY FACES HERE? THE NORTH FACE IN TURMOIL
Published March 12, 1999
NASDAQ "halted trading of shares" of The North Face on Thursday as "shareholder lawsuits mounted against" the CO sporting goods company, according to Dina Bunn of the ROCKY MOUNTAIN NEWS. Groups of shareholders filed "five separate class-action suits against" The North Face following the company's announcement that it is "auditing its accounting procedure and expects to restate its financial reports" for '97 and '98. The complaints allege The North Face executives reported "false financial results and exaggerated sales increases, which led to inflated stock prices." Shares of The North Face are down 52% from a high of $27 on March 11 of last year. The stock closed at $13 on Thursday when trading stopped (ROCKY MOUNTAIN NEWS, 3/12). IN FOCUS: The North Face is the subject of the WALL STREET JOURNAL's "Corporate Focus" and Coleman & Berner write, "Just because urban kids are falling in love with a brand of apparel doesn't mean investors should" (WSJ, 3/12).