VOXX Alert: Johnson & Weaver, LLP Has Filed Class Action Complaint Against Certain Officers & Directors of VOXX International...
July 10 2014 - 6:55PM
Business Wire
Shareholder rights law firm Johnson & Weaver, LLP has filed
a class action lawsuit 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”). The complaint alleges that VOXX and certain of its
officers and directors violated the Securities Exchange Act of
1934.
Plaintiff seeks to recover damages on behalf of all purchasers
of VOXX publicly traded securities during the Class Period. If you
purchased VOXX common stock during Class Period and suffered
losses, you are encouraged to contact lead analyst Jim Baker
(jimb@johnsonandweaver.com) at 619-814-4471
regarding your legal rights in advance of the September 8,
2014 lead plaintiff deadline. If you email, please include
your phone number. 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.
Additional Information about the
Lawsuit:
VOXX operates as a manufacturer and distributor in the
automotive, premium audio, and consumer accessories industries.
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, the next trading day.
Johnson & Weaver, LLP is a nationally recognized shareholder
rights law firm with offices in California, New York and Georgia.
The firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits. For
more information about the firm and its attorneys, please visit
http://www.johnsonandweaver.com.
Johnson & Weaver, LLPJim Baker,
619-814-4471jimb@johnsonandweaver.com
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