Milberg LLP Announces Filing of Class Action Lawsuit against LeapFrog Enterprises, Inc., and Certain of Its Officers
NEW YORK, Feb. 3, 2015 /PRNewswire/ -- Milberg LLP announces that class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of LeapFrog Enterprises, Inc., ("LeapFrog" or the "Company) (NYSE: LF) securities during the period of May 5, 2014 to January 22, 2015, ("the Class Period").
The complaint alleges that throughout the Class Period, LeapFrog and certain of its officers violated the federal securities laws by disseminating false and misleading statements to the investing public.
Specifically, the Company made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing a decline in consumer demand; (2) the launch and shipment of the Company's LeapTV game system was delayed by issues with development; and (3) retailers were overstocked with the Company's LeapPad products. As a result, the Company lacked a reasonable basis for its financial guidance.
On January 22, 2015, after the market closed, LeapFrog announced its preliminary financial results for the third quarter of 2014. These 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.
On this news, shares of LeapFrog declined $1.35 per share, or 34.62%, to close on January 23, 2015, at $2.55 per share, on unusually heavy volume.
If you purchased LeapFrog shares between May 5, 2014 and January 22, 2015, you may, no later than March 24, 2015, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
If you would like to learn more about this potential matter, please contact the following attorney:
Andrei Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: [email protected]
SOURCE Milberg LLP
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article