Robbins Geller Rudman & Dowd LLP Files Class Action Suit against VOXX International Corporation
July 08 2014 - 1:55PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/voxx/) today announced that a class
action has been commenced in the United States District Court for
the Eastern District of New York on behalf of purchasers of VOXX
International Corporation (“VOXX” or the “Company”) (Nasdaq:VOXX)
common stock between May 15, 2013 and May 14, 2014, inclusive (the
“Class Period”), seeking to pursue remedies under the Securities
Exchange Act of 1934 (the “Exchange Act”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/voxx/. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member.
The complaint charges VOXX and certain of its officers and
directors with violations of the Exchange Act. VOXX, together with
its subsidiaries, operates as a manufacturer and distributor in the
automotive, premium audio, and consumer accessories industries in
the United States and internationally. The Company operates in
three different segments: (a) Automotive, which includes rear seat
entertainment systems, satellite radio products, remote start
systems, digital TV tuners, mobile antennas, and other multi-media
applications. Some of the Company’s brands in this segment include
Jensen®, Advent®, Audiovox®, Mac Audio®, Code Alarm®, InVision®,
and Hirschmann; (b) Premium Audio, which includes home theater
systems, high-end loudspeakers, outdoor speakers, sound bars, sound
bases and headphones. Some of the Company’s brands in this segment
include Klipsch®, Jamo®, Energy®, Heco® and Magnat®; and (c)
Consumer Accessories, which includes universal remote controls,
reception products, indoor Bluetooth speakers, outdoor iPod docks,
and other connectivity and charging applications. Some of the
Company’s brands in this segment include RCA, Acoustic Research,
Terk®, Audiovox®, Schwaiger® and Oehlbach®.
The complaint alleges that, during the Class Period, VOXX issued
materially false and misleading statements regarding the Company’s
financial performance and future prospects and failed to disclose
the following adverse facts: (i) that the Company was experiencing
declining headphone sales in its Premium Audio segment; (ii) that
the Company was experiencing a greater than expected sales decline
in its Consumer Accessories segment; (iii) that the Company failed
to timely record losses for its Hirschmann, Invision and Klipsch
acquisitions, trademarks of various brands, and its Technuity
business, among other things, thereby materially overstating the
Company’s financial condition and misstating the Company’s
financial results and financial statements; and (iv) as a result of
the foregoing, Defendants lacked a reasonable basis for their
positive statements about the Company’s financial performance and
outlook during the Class Period.
On January 9, 2014, the Company held a conference call with
analysts and investors. With regard to the Company’s outlook for
fiscal 2014, Defendants lowered their sales guidance from $840
million to $825-$830 million, raised their EBITDA guidance from $62
million to $65 million, and reiterated their gross margin guidance
of 28.8%. In reaction to these announcements, the price of VOXX
common stock fell $2.99 per share, or 18%, to close at $14.00 per
share, on heavy trading volume.
On May 14, 2014, after the markets closed, VOXX announced its
financial results for the fourth quarter and year end of 2014, the
period ending February 28, 2014. For the year, the Company reported
net sales of $809.7 million, gross margin of 28.4%, and EBITDA of
$54.5 (minus any impairment charges) – all below the Company’s
stated guidance. Moreover, the Company reported an impairment
charge of $57.6 million related to its Hirschmann, Invision and
Klipsch acquisitions, trademarks of various brands, and its
Technuity business, among other things. In reaction to these
announcements, the price of VOXX common stock fell $2.56 per share,
or 25%, to close at $7.51 per share, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers
of VOXX common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in 10 offices,
represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. The firm has
obtained many of the largest securities class action recoveries in
history, including the largest jury verdict ever in a securities
class action. Please visit http://www.rgrdlaw.com for more
information.
Robbins Geller Rudman & Dowd LLPSamuel H. Rudman,
800-449-4900orDavid A. Rosenfelddjr@rgrdlaw.com
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