sharper image takes a sharp downturn - ozone air purifier

On Thursday, a news report said the professional e-retailer could go bankrupt due to a settlement. action lawsuit.
The company objected to the statement by a small Florida publication, the Daily Business Review, which said the clearer image lawyer plan argued that cash settlement would force the company to go bankrupt.
Sharper Image said in a statement that the article is "speculative" and that it claims that the company may need to pay $0. 9 billion to resolve the lawsuit for air purifiers, a hypothetical and arbitrary
Sharper sharper Image has sufficient funds to execute its operations and strategic plans.
Sharper Image has recently expanded its existing revolving credit facility and is currently finalizing regular loans, the company said.
But investors apparently think there is some water in the article.
Shapo Image shares fell sharply in the month. 2%, or $1.
80. close at $3.
85 Thursday as the United StatesS.
District Judge Cecilia Altonaga decided whether to acceptAfter settlement
The plaintiff in the class-
The lawsuit argues that clearer images
The sale of ion Breeze air purifiers designed to remove home air pollution is not functioning as advertised and may cause health problems.
About 3 million consumers bought the machines for more than $300.
In 2005, the Consumer Report published an article criticizing the ion breeze.
Sharper Image responds to a libel lawsuit against the magazine's publisher-
Given that this has drawn more attention to the allegations, it is a risky move ---and lost.
A settlement has been reached in the class-
In Florida's action case, consumers receive a $19 coupon for future purchases with clearer images, plus an ozone guard that connects to the machine and reduces smells associated with use.
But Judge Altonaga must decide whether the settlement is fair under the 2005 Class Action Fairness Act, because the $19 coupon requires the plaintiff to spend more money and have a clearer image.
In another lawsuit in California, Michael Dan, a lawyer representing about 2 million customers, argued that the plaintiff should be compensated in cash.
Cid Wilson, director of equity research at Kevin Dann & Partners, said putting the word "bankruptcy" in the title would allow investors to question whether the company could continue to operate.
Wilson said that if you no longer believe that the company can continue as a normal operating company, now you have stocks that value the company based on liquidation.
I think people take the "sell now, ask questions later" approach.
The risk of litigation and whether the company will get the same uncertainty --
Store sales are moving into positive territory, Wilson said. July same-
After falling by 15% and 8% in June, store sales fell by 7%.
One-time Breeze sales accounted for almost 40% of the company's total revenue, Wilson said.
Sales today could reach between 14% and 15%, he said.
When the price of your product drops sharply, Wilson says, it really has an impact on your income.
When you have the same drop
The sale of the store makes no profit.
Wilson, who has a high rating on the stock, said the stock could be a deal, meaning short selling.
If the judge decides at a hearing on Thursday to support the original settlement, the term gain is possible.
But if the settlement is not confirmed, the future of the company will be at risk, he said.