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Plantronics, Inc. Class Action Lawsuit

Case Summary

Company Name
Plantronics, Inc.
Stock Symbol
PLT
Class Period
July 2, 2018 to November 5, 2019
Court
Northern District of California

On November 13, 2019, the Plantronics, Inc. class action lawsuit was filed charging Plantronics and certain of its officers with violations of the Securities Exchange Act of 1934. The Plantronics class action lawsuit was commenced in the Northern District of California on behalf of purchasers of Plantronics securities between July 2, 2018 and November 5, 2019 (the “Class Period”) and is captioned Bassuk v. Plantronics, Inc., et al., No. 19-cv-07481.

Plantronics designs, manufactures, and markets various integrated communication and collaboration solutions for corporate customers, small businesses, and individuals worldwide.

The Plantronics class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about Plantronics’s business, operations, and prospects.  Specifically, defendants failed to disclose that Plantronics’s internal controls over financial reporting, including those related to inventory levels, were inadequate; that Plantronics failed to monitor inventory levels before the introduction of new product models, which would lower demand for older stock; and that Plantronics had engaged in channel stuffing to artificially boost sales.  As a result of this and other information being withheld from the market, Plantronics securities traded at artificially inflated prices during the Class Period, with Plantronics’s stock price reaching a high of more than $80 per share.

On November 5, 2019, Plantronics announced disappointing second quarter 2020 financial results and slashed its fiscal 2020 guidance by approximately 40%.  Additionally, Plantronics disclosed that it would reduce channel inventory by approximately $65 million, which would result in a material impact on its third quarter and full year 2020 results.  That same day, Plantronics filed with the U.S. Securities and Exchange Commission a Form 8-K announcing the termination of Plantronics’ Executive Vice President of Global Sales.  As a result of this news, Plantronics’s share price declined nearly 37% to close at $25 per share on November 6, 2019.

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 seven 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.

Class Period: July 2, 2018 - November 5, 2019
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