Kahn Swick & Foti, LLC (“KSF”) and Former Attorney General of Louisiana, Charles C. Foti, Esq. announce the commencement of an investigation into DynaVox Inc. ("DynaVox" or the "Company") (Nasdaq: DVOX) to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders.
On October 1, 2010, DynaVox shares closed to $5.44 per share, for a drop of 33% for the day. As TheStreet.com reported the evening prior:
“…..the Pittsburgh-based education software maker warned Wall Street that its fiscal first-quarter results would be weak and withdrew its outlook for the whole of fiscal 2011, citing soft demand "for both its speech generating devices and software products."
Analysts were expecting a profit of 9 cents a share from DynaVox on revenue of $27.7 million for the three months ended Oct. 1. On Aug. 25, when the company reported its fourth-quarter results, DynaVox forecast net sales growth of 14% to 17% for fiscal 2011 with adjusted pro forma earnings of 56 and 62 cents a share and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] projected to grow 15%-20%.
The weakness in DynaVox's is striking given the company just went public in late April, selling upwards of 9 million shares at $15 each. The stock is now down 65% off a high of $19.20 on June 16.”
If you have information that would assist KSF in its investigation, or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (
), toll free 1-866-467-1400, ext. 200, after hours via cell phone 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. (
), toll free at 877-694-9510, or after hours via cell phone 330-860-4092. KSF attorneys have significant experience in representing both institutional and individual shareholders in securities fraud litigation nationwide. KSF encourages both institutional and individual purchasers of DynaVox to contact the firm to discuss the investigation.
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