Foothill Ranch-based Wet Seal Inc. said Thursday that a judge dismissed a shareholder lawuit against the teen apparel maker and some of its former directors and executives.
Shareholders filed several suits last year against the company, alleging Wet Seal wasn’t giving accurate financial information. The suits were later consolidated into one case.
A federal district court judge said that shareholder claims against the company were forward-looking statements that are protected by law.
The shareholder group can file an amended suit by Nov. 10.
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.
Shares of Wet Seal were flat at $4.14 on Thursday.
