Saxena White P.A. Files Securities Fraud Class Action Against Skullcandy, Inc.
BOCA RATON, FL--(Marketwired - February 12, 2016) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the District of Utah against Skullcandy, Inc. ("SKUL" or the "Company") (NYSE: SKUL) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period between August 7, 2015, and January 11, 2016, inclusive (the "Class Period).
SKUL is a designer, marketer and distributer of audio and gaming headphones, earbuds, speakers and other accessories under the Skullcandy, Astro Gaming and 2XL brands. The Company is incorporated in Delaware and maintains its principal executive offices in Park City, Utah.
The Complaint brings forth claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.
Specifically, the Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the third quarter and full year 2015 revenue and net income guidance issued during the Company's second quarter 2015 earnings announcement and subsequent conference call were materially false and misleading in that the projections were unattainable; (ii) the fourth quarter and full year 2015 revenue and net income guidance issued during the Company's third quarter 2015 earnings announcement and subsequent conference call were materially false and misleading in that the projections were unattainable; (iii) Defendants intentionally failed to timely disclose the Company's challenges with its largest China distributor; (iv) Defendant Rick Alden and Ptarmagin, an entity controlled by Alden, with full knowledge of the undisclosed materially adverse facts alleged herein, embarked on a selling spree of personal holdings of SKUL common stock at artificially inflated prices, which sales they made without first disclosing these adverse material facts known to Defendants and withheld from the market, which permitted them to engage in unusual insider selling and realize proceeds in excess of $4 million; and (v) as a result of the foregoing, Defendants' statements about SKUL's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
You may obtain a copy of the Complaint at www.saxenawhite.com.
If you purchased SKUL stock between August 7, 2015, and January 11, 2016, inclusive, you may contact Lester Hooker (firstname.lastname@example.org) at Saxena White P.A. to discuss your rights and interests.
If you purchased SKUL common stock during the Class Period of August 7, 2015, and January 11, 2016, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court by no later than April 12, 2016. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., located in Boca Raton, Florida, concentrates its practice on prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
Lester R. Hooker, Esq.
Saxena White P.A.
5200 Town Center Circle, Suite 601
Boca Raton, FL 33486
Tel: (561) 206-6708
Fax: (866) 290-1291