VOXX Alert: Johnson & Weaver, LLP Has Filed Class Action Complaint Against Certain Officers and Directors of VOXX International Corporation; Investors are Encouraged to Contact the Firm Regarding Upcoming Lead Plaintiff Deadline
SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has filed a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of purchasers of VOXX International Corporation (“VOXX” or the “Company”)(Nasdaq: VOXX) common stock between May 15, 2013 and May 14, 2014, inclusive (the Class Period”). The complaint alleges that VOXX and certain of its officers and directors violated the Securities Exchange Act of 1934.
Plaintiff seeks to recover damages on behalf of all purchasers of VOXX publicly traded securities during the Class Period. If you purchased VOXX common stock during Class Period and suffered losses, you are encouraged to contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471 regarding your legal rights in advance of the September 8, 2014 lead plaintiff deadline. If you email, please include your phone number. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Additional Information about the Lawsuit:
VOXX operates as a manufacturer and distributor in the automotive, premium audio, and consumer accessories industries.
The complaint alleges that, during the Class Period, VOXX 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. With regard to the Company’s outlook for fiscal 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.
On May 14, 2014, after the markets closed, VOXX announced its financial results for the fourth quarter and year end of 2014, the period ending February 28, 2014. For the year, the Company 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, among other things. 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, the next trading day.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.