SAN FRANCISCO, Nov. 22, 2019 (GLOBE NEWSWIRE) -- Hagens Berman urges Plantronics, Inc. (NYSE: PLT) investors who have suffered significant losses to submit their losses now or contact the firm immediately to learn if they qualify to recover compensable damages. A securities fraud class action was recently filed on behalf of certain PLT investors against the company and senior executives.
Plantronics, Inc. (PLT) Securities Class Action:
The lawsuit centers on the accuracy of Plantronics’ reported financial results and disclosures to investors.
More specifically, over the past several quarters, Plantronics has announced “solid bottom-line” results. In contrast, according to the complaint, Defendants misled investors by failing to disclose (1) Plantronics engaged in channel stuffing to artificially boost sales, (2) the company’s internal controls over inventory levels were not effective, and (3) the company did not adequately monitor inventory levels ahead of multiple product launches, where new models would displace demand for aging products.
On Nov. 4, 2019, Plantronics announced the abrupt departure of its Executive Vice President, Global Sales.
Then, after the market closed on Nov. 5, 2019, Plantronics announced disappointing Q2 2020 financial results and slashed earnings guidance about 40%. The company announced that it would reduce channel inventory by approximately $65 million and that this action will have a material impact on third quarter and full year results.
In response, the price of Plantronics shares plummeted about 37% on Nov. 6, 2019.
“We’re focused on recovering investors’ losses and whether the company accurately depicted its financial results and business prospects,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Plantronics and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Plantronics should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email PLT@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 510-725-3000