This lawsuit is for investors who purchased the common stock of Koss Corporation (NASDAQ: KOSS) between July 12, 2005 and December 21, 2009.
The lawsuit alleges that the Company and certain of its executives violated federal laws. Specifically, the lawsuit alleges that throughout the time period mentioned above the Company and certain of its executives violated federal law by making materially false and misleading statements on the Company's financial statements by failing to report on those statements that the Company's Vice President of Finance and Secretary, Sujata Sachdeva, misappropriated at least $20 million dollars of Company funds.
On December 21, 2009, the Company shocked investors when it announced that NASDAQ halted trading of its stock to investigate unauthorized transactions and that it had placed Sujata Sachdeva on unpaid administrative leave pending the results of the investigation.
Shortly thereafter, the federal government filed criminal fraud charges against Sujata Sachdeva.
On December 24, 2009, the Company issued a press release announcing that as a result of its investigation, which revealed unauthorized financial transactions, it fired Ms. Sachdeva and two members of the Company's accounting staff who served under her. The Company revealed that its investigation discovered that the fired individuals had made at least $20 in unauthorized transactions from 2006 through present and that, as a result, the Company's previously issued financial statements since at least the end of its 2006 fiscal year through present should no longer be relied upon.
On January 11, 2009, when NASDAQ allowed the Company's stock to resume trading, the share price had dropped to close approximately 24% lower than it closed when trading was halted, on unusually heavy volume.
The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you purchased common stock in Koss Corporation (NASDAQ: KOSS) between July 12, 2005 and December 21, 2009 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.
Case Summary
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I, the Plaintiff, certify that:
1. I have reviewed the Complaint and authorized its filing.
2. Plaintiff did not purchase the security that is the subject of this
action, at the direction of plaintiff's counsel or in order to
participate in any private action arising under this title.
3. I am willing to serve as a representative party on behalf of a class
and will testify at deposition and trial, if necessary.
4. My transactions in the securities, which are the subject of this
action, during the Class Period set forth in the Complaint are as
5. I have not served as a representative party on behalf of a class
under the federal security laws during the last three years, except
if detailed below.
6. I will not accept any payment for serving as a representative party,
except to receive my pro rata share of any recovery or as ordered
or approved by the court including the award to a representative
plaintiff of reasonable costs and expenses (including lost wages)
directly relating to the representation of the class.
Terms:
correct statements.
agreement and retain the Law Offices of Howard G. Smith and its associates to proceed on Plaintiff's behalf, on a contingent fee basis. If I am executing this agreement on behalf of an institution, I further certify that I am authorized to execute this agreement on behalf of the institution.
