OKLAHOMA CITY--(BUSINESS WIRE)--The law firm of Federman & Sherwood has initiated an investigation on behalf of investors of Signet Jewelers Ltd. ("Signet" or the “Company”) (NYSE: SIG). The investigation concerns whether Signet and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On June 2, 2016, James Grant's investment newsletter issued a report raising concerns about the extent to which Signet used its credit operations to boost sales, and also referenced a previously published story on Buzzfeed about customers complaining that their diamonds had been unknowingly replaced with lesser-quality gems by Signet's Kay Jewelers stores.
On June 6, 2016, Seeking Alpha published an article about Signet noting that Kay Jewelers, a subsidiary of Signet, has tarnished its reputation through a spate of diamond replacement allegations in which employees, while repairing jewelry, would remove a client’s diamond and replace it with a cheaper gem. Seeking Alpha noted that “reputation is everything” in the jewelry business. In addition, Signet has taken on an increasing number of bad loans, shaking the markets confidence in the company’s future
On this news, Signet stock fell as much as $13.90, or 14%, to a low of $84.35 during intraday trading on June 6, 2016. In addition, Signet shares have dropped 42% from their all-time high on October 30, 2015.
If you purchased shares of Signet Jewelers Ltd., have information to assist in our investigation, or have any questions or concerns regarding this notice or reservation of your rights, please contact our office. Federman & Sherwood has extensive nationwide experience in representing consumers, investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.