Franklin Wireless Corp. Class Action Lawsuit
- Company Name
- Franklin Wireless Corp.
- Stock Symbol
- Class Period
- September 17, 2020 to April 8, 2021
- Motion Deadline
- June 15, 2021
- Southern District of California
The Franklin Wireless Corp. class action lawsuit charges Franklin Wireless and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities that purchased or otherwise acquired Franklin Wireless securities between September 17, 2020 and April 8, 2021, inclusive (the “Class Period”). The Franklin Wireless class action lawsuit was commenced on April 16, 2021 in the Southern District of California and is captioned Ali v. Franklin Wireless Corp., No. 21-cv-00687.
Franklin Wireless purports to be a leading provider of intelligent wireless solutions such as mobile hotspots, routers, trackers, and other devices.
The Franklin Wireless class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Franklin Wireless’ hotspot devices suffered from battery issues, including overheating, thereby presenting a fire hazard; (ii) consequently, it was reasonably likely that Franklin Wireless’ customers would recall Franklin Wireless’ devices; (iii) thus Franklin Wireless would suffer reputational harm; and (iv) as a result, defendants’ positive statements about Franklin Wireless’ business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On April 1, 2021, Franklin Wireless disclosed that it “ha[d] been notified of reports of battery issues in some of its wireless hotspot devices.” Franklin Wireless further disclosed that Franklin Wireless was “working with its battery and device manufacturing partners and carrier customer to determine the cause and extent of the problem.” On this news, Franklin Wireless’ share price fell.
Then, on April 8, 2021, media reports revealed that Verizon Wireless was recalling certain hotspot devices. According to CNBC, Verizon Wireless was “recalling 2.5 million hotspot devices after discovering that the lithium ion battery can overheat, creating a fire and burning hazard.” Moreover, the “recall impacts Ellipsis Jetpack mobile hotspots imported by Franklin Wireless Corp and sold between April 2017 and March 2021.” On this news, Franklin Wireless’ share price fell an additional 14%.
Finally, on April 9, 2021, Franklin Wireless disclosed that its customer Verizon Wireless had “issued a voluntary recall of its Jetpack Hotspot devices imported by Franklin.” Franklin Wireless further disclosed that “[a]t this time, fewer than 20 reports of trouble have been received with over 2 million devices in [sic] sold over the last three and a half years.” On this news, Franklin Wireless’ share price fell nearly 23%, further damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Franklin Wireless securities during the Class Period to seek appointment as lead plaintiff in the Franklin Wireless class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Franklin Wireless class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Franklin Wireless class action lawsuit. An investor’s ability to share in any potential future recovery of the Franklin Wireless action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Franklin Wireless class action lawsuit or have questions concerning your rights regarding the Franklin Wireless class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Franklin Wireless class action lawsuit must be filed with the court no later than June 15, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.