A lawsuit was filed on behalf of investors in LeapFrog Enterprises, Inc. (NYSE:LF) shares over alleged securities laws violations. Deadline: March 24, 2015. NYSE:LF investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/02/2015 -- An investor, who purchased shares of LeapFrog Enterprises, Inc. (NYSE:LF), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by LeapFrog Enterprises in connection with certain allegedly false and misleading statements made between May 5, 2014 and January 22, 2015.
Investors who purchased shares of LeapFrog Enterprises, Inc. (NYSE:LF) have certain options and for certain investors are short and strict deadlines running. Deadline: March 24, 2015. NYSE:LF investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of LeapFrog Enterprises, Inc. (NYSE:LF) common shares between May 5, 2014 and January 22, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 5, 2014 and January 22, 2015defendants made false and/or misleading statements and/or failed to disclose to investors that LeapFrog Enterprises, Inc. was experiencing a decline in consumer demand, that the launch and shipment of LeapFrog Enterprises' new LeapTV video game system were delayed by developmental issues, that retailers were overstocked with LeapFrog Enterprises' LeapPad products, that as a result, LeapFrog Enterprises, Inc. lacked a reasonable basis for its financial guidance, and that as a result of the foregoing, LeapFrog Enterprises' statements were materially false and misleading at all relevant times.
On January 22, 2015, LeapFrog Enterprises, Inc provided preliminary unaudited fiscal third quarter results for the three-month period ended December 31, 2014. LeapFrog Enterprises, Inc said that for its fiscal third quarter that ended on December 31, 2014 its Revenue will be approximately $145 million compared with prior guidance of $220 million to $240 million and that its Net loss will be approximately $124 million, which includes non-cash charges of approximately $20 million for goodwill impairment and approximately $87 million for deferred tax asset valuation allowance. The Chief Executive Officer of LeapFrog Enterprises, Inc John Barbour said that "We are very disappointed that our performance in the third quarter was significantly below our expectations and that we will not achieve our fiscal year guidance." Shares of LeapFrog Enterprises, Inc. (NYSE:LF) declined from $11.46 per share in July 2013 to as low as $2.42 per share on January 28, 2015.
Those who purchased shares of LeapFrog Enterprises, Inc. (NYSE:LF) have certain options and should contact the Shareholders Foundation.
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