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Shareholders Refile Wet Seal Suit

Foothill Ranch-based Wet Seal Inc. said Wednesday that a shareholder lawsuit against the teen apparel maker and some of its former directors has been refiled.

A federal judge in September had dismissed the shareholders’ previous suit but left open the possibility of a revised filing.

The latest class-action suit was filed on Nov. 23. It alleges that the company made “false and misleading financial reports and statements” between Nov. 30, 2003, and Aug. 19, 2004.

Wet Seal will seek to get the suit dismissed, according to a company statement.

Shareholders filed several suits last year against the company, alleging Wet Seal wasn’t disclosing accurate financial information. The suits were later consolidated into one case.

A federal district court judge that dismissed the earlier suit said the shareholder claims against the company were forward-looking statements that are protected by law.

The company, which restructured earlier this year by selling off unprofitable stores and remaking its executive ranks, has posted better same-store sales results of late.

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