Law Offices of Howard G. Smith, representing investors of DynaVox, Inc. (“DynaVox” or the “Company”) (NASDAQ:DVOX), has filed a class action lawsuit in United States District Court on behalf of a class (the “Class”) consisting of all persons or entities who purchased the securities of DynaVox pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s April 21, 2010, initial public offering (the “IPO”). The class action lawsuit was filed in the United States District Court for the Western District of Pennsylvania.
The Complaint charges DynaVox and certain of the Company’s executive officers, among others, with violations of federal securities laws. DynaVox designs, manufactures and distributes electronic and symbol-based augmentative communication equipment, software and services. The Company offers speech generating technology and special education software solutions for individuals with speech, language, physical or learning disabilities. The Complaint alleges that defendants misrepresented and/or failed to disclose that: (1) the Company was experiencing a softening of demand for its speech generating devices and for its software products; and (2) as a result, the weak demand for the Company’s products 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 commenting on the Company’s first quarter fiscal 2011 results and disclosed that “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.”
As a result of this news, the price of DynaVox shares declined $2.68 per share, or approximately 33%, to close on October 1, 2010 at $5.44 per share, on unusually heavy trading volume.No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased DynaVox securities pursuant and/or traceable to the Company’s April 21, 2010 IPO, you have certain rights, and have until December 13, 2010, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at 215-638-4847, Toll-Free at 888-638-4847, by email to email@example.com or visit our website at http://www.howardsmithlaw.com.