NO SMILEY HAPPY FACES HERE? THE NORTH FACE IN TURMOIL
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).