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Wet Seal Says SEC Ends Probe

July 06, 2006|From Bloomberg News

Wet Seal Inc. said Wednesday that the Securities and Exchange Commission ended a formal investigation of the retailer's second-quarter 2004 earnings report and didn't recommend enforcement action.

The SEC's regional office had been looking into the company's disclosure of a second-quarter 2004 loss and a share sale by former Chairman Irving Teitelbaum since April 19, 2005.

Regulators announced the end of the inquiry in a written notice, Foothill Ranch-based Wet Seal said.

Teitelbaum's Montreal-based retailer, La Senza Corp., sold $15.4 million in Wet Seal stock in July 2004, a week before the beginning of a slide that erased 85% of the share value. The retailer reported a second-quarter net loss of $102.8 million the following month.

Shares of Wet Seal fell 22 cents to $4.63.

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