Koss Corporation (Nasdaq:KOSS)
MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against Koss Corporation ("Koss" or the "Company") (Nasdaq:KOSS) and certain of its officers and directors, on behalf of purchasers of Koss securities between July 12, 2005 and December 21, 2009, inclusive (the "Class Period").
During the Class Period defendants knew or recklessly disregarded that their public statements concerning Koss's financial performance were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that certain Company employees had devised and carried out a scheme to defraud investors and divert Company funds potentially exceeding $31 million; (2) that the Company's financial statements and corporate bank account balances had been manipulated to conceal the diversion of corporate funds; (3) that, as a result, the Company's financial results were overstated during the class period; (4) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (5) that the Company lacked adequate internal and financial controls; and (6) as a result of the above, that the Company's financial statements were materially false and misleading at all relevant times.
On December 21, 2009, Koss announced that NASDAQ halted trading of Koss stock at the Company's request after it discovered unauthorized transactions and that the Board of Directors had appointed a special committee of independent directors to lead an internal investigation to determine the effect of the transactions on Koss's financial statements.
On December 24, 2009, the Company announced that its Principal Accounting Officer had been terminated and two members of its accounting staff who served under her had been placed on unpaid administrative leave. Koss further announced that it had dismissed Grant Thornton LLP as its independent auditors and that its financial statements issued for the fiscal years ended June 30, 2005 through 2009 and the three months ended September 30, 2009 should no longer be relied upon due to the unauthorized financial transactions.
After Koss shares resumed trading on January 11, 2009, the value of those shares declined approximately 24%.
If you purchased Koss securities within the Class Period, you may move the Court, not later than March 16, 2010, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you purchased Koss securities and wish to discuss this litigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
MURRAY, FRANK & SAILER LLP