Judge Calls Signet Out over Suit Dispute

RAPAPORT... A New York federal judge has refused to back down after ruling that Signet Jewelers' downplaying the impact of sexual-harassment claims could be used in an investor class action against the retailer.On July 10, Judge Colleen McMahon ruled Signet shareholders could form a class action in their securities-fraud claim against the jeweler. The following day, Signet claimed it would seek a review of thejudgment, as it disagreed with McMahon's decision to allow the jeweler's previous comments regarding the sexual-harassment lawsuit to be used as evidence in the investors' suit. Attorneys representing the investors asked the court tostand by its initial decision, calling Signet's request its "sixth bite at theproverbial apple" in an effort to have the case dismissed. "I agree with the plaintiff's counsel -my ruling is crystal clear," McMahon explained July 11 in a handwritten response to the owner of KayJewelers and Zales. "There is nothing to clarify. Your understanding iscompletely, totally and utterly WRONG." The class-action certification allows investors in Signet'scommon stock to sue the company as a group. They claim it misled them about thehealth of its credit program and hid the potential liability it faced from the sexual-harassment suit. The decision comes after McMahon ruled last year that statements to investors negating the severity of the claims were notoffhand comments, as the jeweler explained, but a declaration of the company's dependability and trustworthiness. DavidBouffard, Signet's vice president of corporate affairs, declined to comment on the case to Rapaport News. Image:  A Kay Jewelers store. (Corey Coyle)