April 10, 2006
SEC Investigates Zale
Zale Corp. announced Monday that the the Securities and Exchange Commission has begun an investigation into the jewelry chain's accounting practices.
In a statement, Zale said the SEC has subpoenaed materials related to accounting for extended service agreements, leases and accrued payroll, as well as executive pay and severance, earnings forecasts, stock trading and the timing of certain vendor payments.
Zale says it is cooperating fully with the probe and launching its own internal investigation.
Shares of Zale fell 9.5% Monday, according to the Associated Press.