Abraham, Fruchter & Twersky, LLP Announces That It Has Been Retained To File A Class Action Lawsuit Against DynaVox, Inc.
Abraham, Fruchter & Twersky, LLP has been retained to file a class action lawsuit on behalf of a class (the “Class”) of all purchasers of DynaVox, Inc. (“DynaVox” or the “Company”) (NASDAQ:DVOX) stock issued pursuant to the registration statement and prospectus (collective, the “Registration Statement”) filed with the Securities and Exchange Commission in connection with the Company’s April 21, 2010 initial public offering (the “IPO”).
The Complaint charges DynaVox and certain of the Company’s executive officers with violating the federal securities laws by failing to disclose that the Company was experiencing a softening of demand for its speech generating devices and for its software products, which would cause DynaVox’s financial results to trend adversely compared to the trends included in the Registration Statement.
On September 30, 2010, DynaVox issued a press release disclosing these adverse facts, stating that during the Company’s first quarter of fiscal year 2011, “the Company experienced a softening of demand for both its speech generating devices and software products. As a result, operating results for the fiscal first quarter will not be consistent with historical performance or indicative of what management believes to be the Company’s long-term future operating potential.”
In a reaction to this news, shares of DynaVox declined $2.68 per share, or approximately 33%, to close on October 1, 2010 at $5.44 per share, on unusually heavy volume of more than 3.4 million shares traded. The stock sold approximately 9 million shares at $15 per share the day it went public, and is down from a high of $19.20 per share on June 16, 2010.If you purchased DynaVox common stock in connection with the Company’s IPO and you wish to serve as lead plaintiff in this action, you must move the Court no later than December 13, 2010. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
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