Federman & Sherwood Announces the Filing of a Securities Class Action
Lawsuit against VOXX International Corporation
Oklahoma City, OK (July 11, 2014) – On July 8, 2014, a securities class action lawsuit was filed in the United States District Court for the Eastern District of New York against VOXX International Corporation (NASDAQ: VOXX). 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 15, 2013 through May 14, 2014. More specifically, it is alleged that during the Class Period, VOXX International Corporation ("VOXX" or the "Company") issued materially false and misleading statements regarding the Company's financial performance and future prospects and failed to disclose the following adverse facts: (i) that the Company was experiencing declining headphone sales in its Premium Audio segment; (ii) that the Company was experiencing a greater than expected sales decline in its Consumer Accessories segment; (iii) that the Company failed to timely record losses for its Hirschmann, Invision and Klipsch acquisitions, trademarks of various brands, and its Technuity business, among other things, thereby materially overstating the Company's financial condition and misstating the Company's financial results and financial statements; and (iv) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's financial performance and outlook during the Class Period.
On January 9, 2014, the Company held a conference call with analysts and investors to set forth the Company’s fiscal outlook for 2014. Defendants lowered their sales guidance from $840 million to $825-$830 million, raised their EBITDA guidance from $62 million to $65 million, and reiterated their gross margin guidance of 28.8%. In reaction to these announcements, the price of VOXX common stock fell $2.99 per share, or 18%, to close at $14.00 per share, on heavy trading volume.
Then, on May 14, 2014, VOXX announced its financial results for the fourth quarter and year end of 2014, and had reported net sales of $809.7 million, gross margin of 28.4%, and EBITDA of $54.5 (minus any impairment charges) - all below the Company's stated guidance. Moreover, the Company reported an impairment charge of $57.6 million related to its Hirschmann, Invision and Klipsch acquisitions, trademarks of various brands, and its Technuity business. In reaction to these announcements, the price of VOXX common stock fell $2.56 per share, or 25%, to close at $7.51 per share, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all VOXX International Corporation 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 Monday, September 8, 2014 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: Lynn.
Posted on Fri, July 11, 2014
by K. Lynn Nunn filed under