Plantronics, Inc. Class Action Lawsuit
- Company Name
- Plantronics, Inc.
- Stock Symbol
- Class Period
- July 2, 2018 to November 5, 2019
- 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.
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