San Diego, CA -- (SBWIRE) -- 08/01/2012 -- An investor in shares of RadioShack Corporation (NYSE:RSH) filed a lawsuit in the U.S. District Court, Southern District of New York against RadioShack Corporation over alleged violations of Federal Securities Laws in connection with certain financial statements.
Investors who purchased shares of RadioShack Corporation (NYSE:RSH) between July 26, 2011 and July 24, 2012, have certain options and there are strict and short deadlines running. Deadline: October 1, 2012. NYSE:RSH investors should Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on all persons who purchased the common stock of RadioShack Corporation (NYSE:RSH) during the period July 26, 2011 through July 24, 2012, that RadioShack Corporation violated the Securities Exchange Act of 1934. Specificall, the plaintiff alleges that between July 26, 2011 and July 24, 2012, defendants allegedly claimed they were well on their way to executing their strategy to transform RadioShack from its historical roots as a seller of consumer electronics and accessories into a reseller of wireless products. Defendants had begun opening kiosks in Target stores to sell wireless products and had entered into a relationship with Verizon Wireless, the largest wireless provider, to sell Verizon wireless products, so the lawsuit.
The plaintiff claims that in an attempt to cover-up the true financial realities facing the company, Defendants allegedly repeatedly emphasized returning value to the shareholders by funding the stock repurchase program and the solid dividends.
RadioShack Corporation (NYSE:RSH) reported that its Annual Revenue increased from $4.07billion in 2009 to $4.37billion in 2011. However, its Net Income fell from $205million for 2009, respectively $206.10million in 2010, to $72.20million in 2011.
Shares of RadioShack Corporation (NYSE:RSH) grew from $8.11 per share in March 2009 to as high as $22.80 per share in October 2010. Since then NYSE:RSH shares lost substantial value.
Then on July 25, 2012. RadioShack Corporation (NYSE:RSH) reported its financial results for the second quarter 2012.
NYSE:RSH shares fell from $3.65 per share on July 24, 2012, to as low as $2.373 per share on July 26, 2012.
On July 30, 2012, NYSE:RSH shares closed at $2.54 per share, significantly below its current 52weekHigh of $14.70 per share.
Those who purchased shares of RadioShack Corporation (NYSE:RSH) between July 26, 2011 and July 24, 2012, have certain options and there are strict and short deadlines running. Deadline: October 1, 2012. NYSE:RSH investors should Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego