Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Plantronics, Inc.
To join this class action, please complete the following Investor Certification.
Oklahoma City, OK (November 21, 2019) – On November 13, 2019, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Plantronics, Inc. (NYSE: PLT). 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 July 2, 2018 through November 5, 2019. More specifically, according to the complaint Defendants failed to disclose to investors: (1) that the Company had engaged in channel stuffing to artificially boost sales; (2) that the Company’s internal control over inventory levels was not effective; (3) that the Company had not adequately monitored inventory levels ahead of multiple product launches, where the new models would displace demand for aging products; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On November 5, 2019, the Company disclosed a $65 million reduction in channel inventory “by reducing sales to channel partners” and slashed its fiscal 2020 guidance, expecting revenue between $1.72 billion and $1.81 billion and adjusted EBITDA between $282 million and $323 million. Plantronics also reported that its Executive Vice President of Global Sales was leaving the Company. On this news, the Company’s stock price fell $14.44 per share, or nearly 37%, to close at $25.00 per share on November 6, 2019.
Plaintiff seeks to recover damages on behalf of all Plantronics, 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 Monday, January 13, 2020 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.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester atrkh@federmanlaw.com