March 14, 2014 (Shareholders Foundation) - An investigation on behalf of current long-term stockholders of shares of Joes Jeans Inc (NASDAQ:JOEZ) was initiated concerning whether certain Joes Jeans officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Joes Jeans officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders' approval for an amendment to the Amended and Restated 2004 Stock Incentive Plan ('Plan').

In the Proxy Statement filed by Joes Jeans Inc with the Securities and Exchange Commission the Board of Directors recommends that Joe's Jeans's shareholders vote to approve an increase of the total shares of common stock for issuance by 5,000,000 shares of common stock to 11,825,000 under the Plan.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Joes Jeans Inc.

Joe's Jeans Inc reported that its Total Revenue rose from $188.64 million for the 12 months period that ended on November 30, 2012 to $140.18 million for the 12 months period that ended on November 30, 2013, while its Net income of $5.57 million for the 12 months period that ended on November 30, 2012 declined to a Net Loss of $7.31 million for the 12 months period that ended on November 30, 2013.

Shares of Joe's Jeans Inc (NASDAQ:JOEZ) grew from $0.525 per share in late 2011 to $1.94 per share in April 2013, but then declined to as low as $1.06 per share in late 2013.

On March 14, 2014, NASDAQ:JOEZ shares closed at $1.33 per share.