SAN DIEGO & HAUPPAUGE, N.Y., July
15, 2014 /PRNewswire/ -- Shareholder rights law firm
Robbins Arroyo LLP announces that an investor of VOXX International
Corporation (NASDAQ: VOXX) has filed a federal securities fraud
class action complaint in the U.S. District Court for the Eastern
District of New York. The complaint alleges that the company
and certain of its officers and directors violated the Securities
Exchange Act of 1934 between May 15,
2013 and May 14, 2014 (the
"Class Period"). VOXX manufactures and distributes various
electronic automotive, premium audio, and consumer accessories
within the United States and
internationally.
VOXX Is Accused of Misrepresenting Company Outlook for
Fiscal 2014
According to the complaint, shares of VOXX fell 18% to close at
$14.00, on January 9, 2014, following the announcement that
VOXX would be revising its fiscal 2014 sales guidance. After
maintaining its original guidance for most of fiscal year 2014,
VOXX lowered its sales guidance from $840
million to a range of $825-$830
million. Despite this change, VOXX maintained that it
anticipated achieving the 28.8% gross profit margin projected at
the beginning of fiscal year 2014 and actually increased its EBITDA
guidance by $3 million to $65 million
for the fourth quarter. Nevertheless, on May
14, 2014, VOXX reported net sales of $187.1 million, a net loss of $49 million, and an EBITDA of loss of
$53.4 million. Further, VOXX
announced a gross profit margin of 28.4%, missing its projected
goal of 28.8%. In reaction to the financial results, VOXX stock
dropped $2.56, or 25%, to close at
$7.51 per share.
The complaint further alleges that VOXX failed to disclose to
investors that: (i) in the Premium Audio segment, the company was
experiencing a decline in headphone sales, (ii) the consumer
accessories segment was seeing a greater than anticipated sales
decline, and (iii) the company did not record losses for various
acquisitions or trademarks in a timely manner, causing them to
overstate the company's financial condition, and misstate financial
results and statements.
VOXX Investors Are Encouraged to Contact Shareholder
Rights Law Firm Robbins Arroyo LLP
If you invested in VOXX and would like to discuss your
shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003,
DDonahue@robbinsarroyo.com, or via the information form on the
firm's shareholder rights blog:
www.robbinsarroyo.com/shareholders-rights-blog/voxx-international-corporation
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP