A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Logitech International SA (“Logitech” or the “Company”) (NASDAQ: LOGI) common stock between October 28, 2010 and April 1, 2011, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). The complaint charges Logitech and certain of its officers and directors with violations of the Exchange Act. Logitech engages in the development and marketing of products in PC navigation, Internet communications, digital music, home-entertainment control, gaming, and wireless devices.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges: (a) that the Company’s distributors were overstocked with inventory of certain product lines; (b) that the Company’s pricing and promotional activity was not operating according to plan; (c) that demand for the Company’s products in the Europe, Middle East and Africa markets was significantly declining far below internal expectations; and (d) as a result of the foregoing, defendants’ positive statements about the Company were lacking in a reasonable basis of fact and were materially false and misleading when made.
On March 31, 2011, after the close of the market, Logitech issued a press release announcing that it had “lowered its full-year outlook for Fiscal Year 2011, ending March 31, 2011. The company now expects FY 2011 sales in the range of $2.35 to $2.37 billion, down from the previous range of $2.4 to $2.42 billion. FY 2011 operating income is now expected to be in the range of $140 to $150 million, down from the previous range of $170 to $180 million.” In response to this announcement, on April 1, 2011, the price of Logitech stock declined from $18.13 per share to $14.71 per share, or 19%, on extremely heavy trading volume.
If you are a current shareholder and /or purchased during the class period between October 28, 2010 and April 1, 2011 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.