NEW YORK, NY / ACCESSWIRE / April 11, 2016 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Skullcandy, Inc. ("Skullcandy" or the "Company") (NASDAQ: SKUL) of the April 12, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Utah on behalf of all those who purchased Skullcandy securities between May 5, 2015 and January 11, 2016 (the "Class Period"). The case, Oswald v. Skullcandy et al, No. 2:16-cv-00246-CW was filed on March 28, 2016, and has been assigned to Judge Clark Waddoups.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that its financial, revenue, net income and earning guidelines for the third quarter and full year 2015 as issued on the Company second quarter filings were unattainable and by failing to inform the charge and associated tax rate impacts associated with its largest Chinese distributor. Furthermore, the complaint alleges that Defendant Rick Alden and Ptarmagin, an entity controlled by Alden, took advantage of artificially inflated prices to unload a large amount of personal holdings of Skullcandy common stock into the market for a profit.
On January 11, 2016, the Company updated its financial outlook for the fourth quarter 2015, announcing that it had missed its quarterly net sales projections.
After the announcement, Skullcandy's share price fell from $4.55 per share on January 11, 2016 to a closing price of $3.26 on January 12, 2016--a $1.29 or a 28.6% drop.
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Take Action
If you invested in Skullcandy stock or options between May 5, 2015 and January 11, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/SKUL. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Skullcandy's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP
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SOURCE: Faruqi & Faruqi, LLP
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