Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against Koss Corporation
NEW YORK, Feb. 25 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the Eastern District of Wisconsin on behalf of those who purchased or otherwise acquired stock of Koss Corporation ("Koss" or the "Company") (Nasdaq: KOSS) during the period between July 12, 2005 through and including December 21, 2009 (the "Class Period").
The Complaint charges Koss and certain of the Company's current and former executive officers with violations of federal securities laws. The complaint alleges that throughout the Class Period defendants knew or disregarded that their public statements concerning Koss' financial performance were false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that certain Company employees had devised and carried out a scheme to defraud investors and divert Company funds potentially exceeding $31 million; (2) that the Company's financial statements and corporate bank account balances had been manipulated to conceal the diversion of corporate funds; (3) that, as a result, the Company's financial results were overstated during the Class Period; (4) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (5) that the Company lacked adequate internal and financial controls; and (6), as a result of the above, that the Company's financial statements were materially false and misleading at all relevant times.
On December 21, 2009, Koss shocked investors when it announced that NASDAQ halted trading of Koss stock at the Company's request after it discovered certain unauthorized transactions at the Company, and the Board of Directors had appointed a special committee of independent directors to lead an internal investigation to determine the effect of the transactions of Koss' Financial statements.
On January 11, 2010, when trading in Koss stock resumed, shares of the Company's stock declined $1.32 per share, approximately 24%, to close on January 11, 2010, at $4.19 per share, on unusually heavy volume.
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