Skechers says recently filed civil complaints against Shape-ups product line are a frivolous and a thinly veiled attempt to extort money from the Company
Company says it voluminous scientific studies and customer testimonials fully support Shape-ups claims and it will vigorously defend against two "meritless" civil suits
Company says American Council on Exercise report critical of Shape-ups is flawed and marred by conflict-of-interest
MANHATTAN BEACH, Calif.--(BUSINESS WIRE)-- SKECHERS USA, Inc. (NYSE:SKX) today said that the two recently filed civil class actions disclosed in its Form 10-Q for the quarter ended June 30, 2010 each have only a single plaintiff and both are completely baseless.
The complaints, Tamara Grabowski v. Skechers USA, Inc. and Sonia Stalker v. Skechers USA, Inc., allege that the Company's advertising for Shape-ups violates California law. The complaints, which were filed respectively on June 18 and July 2, are in the early stages and that the Company will mount a vigorous defense. Skechers is being represented in the civil suits by Daniel M. Petrocelli of O'Melveny & Myers.
"While the Company does not usually comment on pending litigation and seeks to vindicate itself in court, it is important to set the record straight before such false and disparaging allegations take on a life of their own," said Anthony Glassman, an attorney and spokesperson for Skechers. "The Company believes that the lawsuits are inconsistent with numerous scientific studies, including studies cited in one of the lawsuits."
Those studies were conducted on the category of shoes called rocker bottom shoes, to which Shape-ups belong, the Company said. Links to key studies, including two published in peer-reviewed journals, are available at www.ToningShoeStudies.com.
Mr. Glassman said, "The body of scientific research shows that rocker bottom shoes increase muscle activity and heighten the metabolic demands of walking. Indeed, one study cited in one of the lawsuits actually found that subjects wearing rocker bottom shoes experienced increased muscle activity in various muscles, when compared to those wearing flat bottom shoes."
"The research has also shown that wearers of Shape-ups -- when compared to wearers of conventional flat bottom shoes -- show increased weight loss, greater reductions in body fat, and other improvements in fitness and health markers," Mr. Glassman said.
He said the most recent study was an eight week study with 80 participants conducted by Dr. Steven Gautreau, D.C. and further reviewed and endorsed independently by Dr. Gerry Edwards, D.C.
Mr. Glassman added that the Shape-ups studies are consistent with the findings of other studies of rocker-bottom shoes published in peer-reviewed clinical journals over a period of several years, and three prior studies conducted on Shape-ups by other experts, including a study by a leading Southern California hospital and University; a prior trial study by Dr. Gautreau; and a study by Juntendo University in Japan.
The Company said that these scientific studies also contradict a recent critical report by the American Council on Exercise (ACE), an exercise company that sells fitness training courses, fitness materials and apparel and has a financial incentive to minimize Shape-ups sales through its public relations and marketing.
"The ACE report has no scientific validity and is virtually worthless to support any claim as to the benefits of Shape-ups," Mr. Glassman said. "The report's conclusions are wholly unscientific and not supported by the very limited data released, the unsound methodology and poor analytical technique that were used. The ACE report stands in marked contrast to the numerous studies supporting the benefits of rocker bottom shoes, which fully disclose the study design and methods used."
The Company also said that the popularity of its toning shoes provides convincing evidence that customers are pleased with the product.
"Skechers has received thousands of letters from fully satisfied customers and hundreds of reviews and amateur videos have been posted on the Internet by customers praising Shape-ups shoes and declaring that they have received the benefits described in Skechers' advertising," Mr. Glassman said. "We believe the sheer volume of this unsolicited positive feedback received is a clear indication that the vast majority of consumers are satisfied and do not feel they have been misled."
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company's global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia..
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and can be identified by the use of forward looking language such as "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "will be," "will continue," "will result," "could," "may," "might," or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include international, national and local general economic, political and market conditions including the global economic slowdown and the ongoing financial crisis and market instability; entry into the highly competitive performance footwear market; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in the Company's Form 10-K for the year ended December 31, 2009 and Form 10-Q for the quarter ended June 30, 2010. The risks included here are not exhaustive. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time and the Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.
Source: SKECHERS USA, Inc.
Released Aug 10, 2010 • 3:21 pm EDT