Hilfiger accused of fraud

Tommy Hilfiger Corporation is being accused of fraud. Law firm Abbey Gardy has commenced a class action against the Company. The firm is working on behalf of all puchasers of the corporation's shares between 3 November 1999 and 24 September 2004.

The plaintiff is accusing the Company of creative accounting practices. Reportedly Hilfiger reported inflated net income after tax, in violation of General Accepted Accounting Principles (GAAP). Furthermore, the Company is accused of reporting revenue generated in the US, thereby lowering its tax rate.

Last week the Company was subpoenaed by a grand jury to provide documents regarding buying office commissions since 1990. The market reacted in shock and Hilfiger shares dropped. Abbey Gardy is intent on recovering damages on behalf of the victims.