N@N

Law Offices of Howard G. Smith Announces Investigation On Behalf of Shareholders of Koss Corporation

^{Published on 2009-12-28 19:20:20 - Market Wire}
 

BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith announces that it is investigating potential violations of federal securities laws against Koss Corporation ("Koss" or the "Company") (Nasdaq:KOSS) and possible breaches of fiduciary duty and/or other violations of state law by the Koss board of directors, related to the Company's previously disclosed internal investigation of "unauthorized financial transactions." Koss has expanded its internal investigation to include fiscal years since 2006 to the present.

On December 24, 2009, the Company issued a press release announcing that following the discovery of unauthorized financial transactions, Sujata Sachdeva, the Company's Vice President of Finance and Secretary, has been terminated and two members of the Company's accounting staff who served under Ms. Sachdeva were placed on unpaid administrative leave. According to the Company: "Preliminary estimates indicate that the amount of unauthorized transactions since fiscal year 2006 through the present may exceed $20 million, but at this point the Company and its advisors cannot assess the potential impact on its financial statements or identify the extent that specific fiscal periods may be affected. Nor can the Company and its advisors yet assess the extent of the possible offsets through insurance, asset recoveries and other mechanisms related to the unauthorized transactions. As a result, the Company has concluded that its previously issued financial statements at least since the end of its 2006 fiscal year should no longer be relied upon. The Company plans to restate its financial statements for such periods as further investigation indicates."

If you purchased shares of Koss Corporation since January 2006, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to [ howardsmith@howardsmithlaw.com ] or visit our website at [ http://www.howardsmithlaw.com ].