An investigation on behalf of investors of New York & Company, Inc. (NYSE:NWY) stock over possible violations of Federal Securities Laws by New York & Company was announced.

New York & Company, Inc., located in New York, together its subsidiaries is a specialty retailer of women's apparel. New York & Company designs and sources its branded New York & Company merchandise sold through its network of retail stores and e-commerce store at www.nyandcompany.com. New York & Company, Inc. reported in 2007 Total Revenue of $1.19494billion, in 2008 $1.13985billion, and in 2009 $1.00667billion.

According to the investigation by a law firm the investigation focuses on the following announcements by New York & Company. On March 18, 2010, New York & Co. issued a press release reporting its fourth quarter and Fiscal Year 2009 financial results. New York & Companys March 18 press release stated, in part, as follows: The company continues to plan for a challenging consumer spending environment in fiscal year 2010 and has planned promotional events accordingly. Regarding expectations for Spring 2010, the Company provided the following; - Comparable store sales for the first half of fiscal year 2010 are expected to return to positive territory with comparable store sales expected in the low positive single-digit range.; - Gross margins for the first half of fiscal year 2010 are expected to improve versus the prior years levels* * * ; - To maximize sales opportunities going forward, the Company plans to end the Spring season with double-digit increases in inventory. This increase shifts the Companys inventory more in-line with historical levels in contrast to the cumulative 27% decline in inventory levels over the preceding two-year period.

Then on May 20, 2010 New York & Co. issued a press release reporting its Q1 results and updating its Q2 guidance. During the conference call that followed, New York & Company reported a decrease in gross profit as a percentage of net sales due to a decrease in merchandise margins, resulting from increased levels of promotional activity. New York & Company explained as follows in response to an analyst question: We had a couple of products that didnt make plan, and when you have tight inventory, your accuracy becomes very, very important and so its further exacerbated. When you have bad inventory, youre going to take markdowns on it, and we always have some bad inventory. Theres nobody who said [sic] has a perfect inventory, but usually you have the opportunity, when your inventory is at a reasonable level, to offset some of that. On May 20, 2010, New York & Company, Inc. common stock (NWY) declined by $1.17 per share, about 22%, to close at $4.13 per share. Shares of New York & Company, Inc. (NWY) traded recently at $3.68 per share, down from its 52weekHigh of $6.53 per share. NWY shares reached almost $12 per share during 2008, over $16 in 2007, over $21 in 2006, and over $ 24 in 2005.