An investigation on behalf of current long term investors in shares of Carter's, Inc. (Public, NYSE:CRI) over potential shareholder claims shareholders was announced.

The investigation by a law firm concerns possible breaches of fiduciary duties after the announcement on Monday that the company concluded its consolidated financial statements for the fiscal years 2004 through 2008, and the fiscal quarters from Sept. 29, 2007 through July 4, 2009, should be restated. On October 26, 2009, Carter's announced that it would postpone its third-quarter results, on the grounds that 'it needed more time to complete a review of its accounting for discounts offered to some wholesale customers.' Then, on November 10, 2009, Carter's revealed that it would be restating its consolidated financial statements for the fiscal years 2004 through 2008, and the fiscal quarters from Sept. 29, 2007 through July 4, 2009. Carter's share price has dropped nearly 25% since these accounting issues came to light. Carter's CEO Michael Casey stated that the Company was, 'improving internal controls and management processes to help reduce risks inherent in this component of our business going forward.' Mr. Casey was Carter's chief financial officer for the stated periods of restatement. The announcement has caused speculation that there may be a change in company management, so the investigation.

Carters already faces a pending lawsuit in the United States District Court for the Northern District of Georgia, on behalf of all purchasers of the securities of Carter's, Inc. between February 21st, 2006 and July 24th, 2007 over allegedly materially false and misleading statements about their ability to turn the operations of acquired company Oshkosh B'Gosh around. The lawsuit was filed against Carter's and certain officers and directors. The action seeks to pursue remedies under the Securities Exchange Act of 1934 (the 'Exchange Act'). Specifically, the complaint alleges that Defendants issued materially false and misleading statements about their ability to turn the operations of acquired company Oshkosh B'Gosh around. Then on July 24, 2007, Carter Inc.'s announced that it was taking a large write-down ($142.9 million) on the tangible assets/goodwill of its Oshkosh subsidiary and as a result of this news its shares reacted negatively falling from $24.87 to $22.75 per share by the end of trading on July 25, 2007, or a 8.5% decline in value, so the lawsuit.


Carters, Inc., located in Atlanta, GA, is a marketer of apparel for babies and young children in the United States. The Company owns two brand names in the childrens apparel industry, Carters and OshKosh. Carters offers multiple product categories, including baby, sleepwear, playclothes and other accessories. Carter's, Inc. reported in 2007 Total Revenue of $1.41225billion and in 2008 Total revenue of $1.49002billion. Carter's, Inc. shares (CRI) traded recently at $22.70 per share, down from its 52weekHigh of $29.49 per share.