BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors that purchasers of the securities of LeapFrog Enterprises, Inc. (“LeapFrog” or the “Company”) (NYSE:LF) between May 5, 2014 and January 22, 2015, inclusive (the “Class Period”), have until March 24, 2015, to file a motion to be appointed as lead plaintiff in the shareholder lawsuit filed in the United States District Court for the Northern District of California. LeapFrog is a developer of educational entertainment for children, including the LeapPad family of learning tablets.
The lawsuit alleges that defendants 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, LeapFrog announced preliminary financial results for its 2014 fiscal third quarter. These financial results were significantly below the Company’s stated expectations and financial guidance. According to the Company, LeapFrog’s disappointing sales results were related to decreased demand for its products and development issues with the Company’s LeapTV educational video game system. Following this news, shares of LeapFrog declined nearly 35%, to close on January 23, 2015, at $2.55 per share, on unusually heavy volume.
If you are a member of the Class described above, you may move the Court no later than March 24, 2015, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.