Shareholders of the Koss Corporation (NASDAQ: KOSS) have filed a securities class action lawsuit against the Company in Wisconsin federal court. The shareholder lawsuit seeks to recover stock losses for shareholders who purchased Koss stock between July 12, 2005 and December 21, 2009.
The shareholder class action lawsuit claims Koss and its corporate executives issued false and misleading statements concerning the company’s financial performance while corporate funds were diverted and used for improper purposes for more than four years. On December 21, 2009, NASDAQ halted trading in Koss Corporation stock at the company’s request. Koss then disclosed to investors for the first time certain executives of the company had engaged in unauthorized transactions, stealing millions of dollars from the corporate accounts for more than four years.
Koss stated the company was undertaking an internal investigation into the matter. On January 11, 2010 trading resumed in Koss stock. The company’s shares promptly loss more than 24% in value on heavy trading.
The class action lawsuit alleges shareholders purchased artificially inflated shares of Koss stock between July 12, 2005 and December 21, 2009 because Koss and its executives failed to disclose the following material facts to shareholders:
- Company executives had stolen millions of dollars in corporate funds
- The company’s financial statements and bank accounts were manipulated to cover up the theft
- Koss’ financial results were drastically overstated
- Koss’ financial results violated generally accepted accounting principles (GAAP)
- The company lacked basic internal controls to detect the theft of corporate funds
If you own Koss Corporation stock and wish to learn about your rights or how to participate in the class action, please fill call 1-619-573-1701.
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