A lawsuit on behalf of investors, who purchased their Zale Corporation (Public, NYSE:ZLC) shares between November 16, 2006 and October 29, 2009, alleging violations of Federal Securities Laws by Zale Corporation and others is currently pending in the United States District Court for the Northern District of Texas. In addition an investigation on behalf of long term investors of Zale Corporation (Public, NYSE:ZLC), who currently hold their ZLC shares, focusing on potential claims against certain directors and officers Zale Corporation (NYSE:ZLC) was announced.

An investor in Zale Corp. shares (NYSE: ZLC) filed a lawsuit against Zale Corp, and certain of its officers and directors over alleged violations of Federal Securities Laws. The Complaint alleges that defendants knew or recklessly disregarded that their public statements concerning Zales business, operations and prospects were materially false and misleading. Specifically, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose material facts. On October 29, 2009, Zale Corp. filed its Annual Report with the United States Securities and Exchange Commission for the fiscal year ended July 31, 2009, containing restated financial information for fiscal 2008, 2009, and prior periods, to reflect certain accounting adjustments for advertising costs, intercompany accounts receivable, depository bank accounts, federal income taxes, and personal property taxes. Therein, Zale Corp. further disclosed that the SEC is investigating the accounting issues that led to the 2008 and 2009 restatements. As a result of this news, so the lawsuit, shares of Zale Corp. (ZLC) declined $1.66 per share, or nearly 26%, to close on October 30, 2009, at $4.73 per share, on unusually heavy trading volume.

Zale Corporation, located in Irving, Texas, is a specialty retailer of fine jewelry in North America. At July 31, 2008, the Company operated 1,396 specialty retail jewelry stores and 739 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico. Zale Corporation reported on July 31, 2007 a past 12month Total Revenue of $2.15278billion, on July 31, 2008 a past 12 month Total Revenue of $2.13804billion, and on July 31, 2009 a past 12 month Total Revenue of $1.77974billion. Shares of Zale Corporation traded recently at $4.73 per share, down from its 52weekHigh of $17.75 per share, $30.89 per share in 2008, and $29.82 per share in 2007.