Kendall Law Group, founded by a former federal judge, continues its investigation of Koss Corporation (NASDAQ: KOSS) for shareholders who have purchased stock since June 30, 2005. The investigation for possible securities law violations is triggered by recent announcements made by Koss concerning its internal investigation for unauthorized financial transactions.
If you purchased Koss common stock during the relevant time period and have suffered a loss, you may have a claim against the company. For information about those claims, contact attorney Hamilton Lindley at 877-744-3728 or by email at firstname.lastname@example.org.
On December 24, 2009, Koss issued a press release announcing that Sujata Sachdeva, Secretary and Vice President of Finance, had been terminated due to the discovery of unauthorized financial transactions. Also, two other members of the company’s accounting staff were placed on unpaid administrative leave. The press release also stated that the 10-K for the fiscal years ended June 30, 2006 through 2009 and the Form 10-Q for the three months ended September 30, 2009 could not be relied on.
On January 4, 2010, the Company reported that the “Audit Committee had expanded the scope of the disclosed internal investigation of unauthorized financial transactions by Sujata Sachdeva, the Company’s former Vice President of Finance and Secretary, to include fiscal years 2005 through the present.” This internal investigation caused the company to also state than the 10-K for the fiscal years ended June 30, 2005 should not be relied upon. Koss also reported that “Preliminary estimates indicate that the amount of unauthorized transactions since fiscal year 2005 through the present has exceeded $31 million, but at this point the Company and its advisors cannot assess the potential impact on its financial statements or identify the extent that specific fiscal periods may be affected.”On January 20, 2010, a grand jury in Milwaukee returned an indictment against Sujata Sachdeva for six counts of wire fraud. Federal agents listed 461 boxes of shoes and 34 fur coats among thousands of items recovered from offices rented by Sachdeva.