Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Leapfrog Enterprises, Inc.
Oklahoma City, OK (January 28, 2015) – On January 23, 2015, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Leapfrog Enterprises, Inc. (NYSE: LF). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 5, 2014 through January 22, 2015. More specifically, this litigation was filed because the Company made false and/or misleading statements and/or failed to disclose to investors that: (1) the Company was experiencing a decline in consumer demand; (2) the launch and shipment of the Company’s new LeapTV video game system were delayed by developmental issues; (3) retailers were overstocked with the Company’s LeapPad products; (4) as a result, the Company lacked a reasonable basis for its financial guidance; and (5), as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times. On January 22, 2015, after the close of trading, the Company announced preliminary financial results for its 2014 fiscal third quarter. The Company also announced a $107 million write-down of goodwill and deferred tax assets which was attributed to the sales shortfall in part to delays in shipping and promoting LeapTV.
On this news, the Company’s shares declined to close on January 23, 2015 at $2.55 per share.
Plaintiff seeks to recover damages on behalf of all Leapfrog Enterprises, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, March 24, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Wed, January 28, 2015
by Robin Hester filed under