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SOURCE Robbins Arroyo LLP
SAN DIEGO & HAUPPAUGE, N.Y., July 15, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of VOXX International Corporation (NASDAQ: VOXX) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 15, 2013 and May 14, 2014 (the "Class Period"). VOXX manufactures and distributes various electronic automotive, premium audio, and consumer accessories within the United States and internationally.
VOXX Is Accused of Misrepresenting Company Outlook for Fiscal 2014
According to the complaint, shares of VOXX fell 18% to close at $14.00, on January 9, 2014, following the announcement that VOXX would be revising its fiscal 2014 sales guidance. After maintaining its original guidance for most of fiscal year 2014, VOXX lowered its sales guidance from $840 million to a range of $825-$830 million. Despite this change, VOXX maintained that it anticipated achieving the 28.8% gross profit margin projected at the beginning of fiscal year 2014 and actually increased its EBITDA guidance by $3 million to $65 million for the fourth quarter. Nevertheless, on May 14, 2014, VOXX reported net sales of $187.1 million, a net loss of $49 million, and an EBITDA of loss of $53.4 million. Further, VOXX announced a gross profit margin of 28.4%, missing its projected goal of 28.8%. In reaction to the financial results, VOXX stock dropped $2.56, or 25%, to close at $7.51 per share.
The complaint further alleges that VOXX failed to disclose to investors that: (i) in the Premium Audio segment, the company was experiencing a decline in headphone sales, (ii) the consumer accessories segment was seeing a greater than anticipated sales decline, and (iii) the company did not record losses for various acquisitions or trademarks in a timely manner, causing them to overstate the company's financial condition, and misstate financial results and statements.
VOXX Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in VOXX and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/voxx-international-corporation
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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