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Stull, Stull & Brody Announces Investigation on Behalf of Shareholders of Koss Corporation

^{Published on 2009-12-29 16:10:14 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Attorney Advertising. Notice is hereby given that Stull, Stull & Brody has commenced an investigation on behalf of shareholders of the common stock of Koss Corporation ("Koss" or the "Company") (Nasdaq: KOSS) for possible breaches of fiduciary duty and other violations of state law in connection with the Company's announcement that two members of its accounting staff made unauthorized financial transactions in an amount in excess of $20 million.

On December 24, 2009, the Company announced that its Secretary and Vice President of Finance were placed on unpaid administrative leave due to unauthorized financial transactions during the period of 2006 through the present. According to the Company, as a result of the unauthorized transactions, the Company's financial statements since at least the end of fiscal 2006 should no longer be relied upon. The Company announced that it plans to restate its financial statements for such periods as the Company's further investigation indicates but that, at this point, the Company cannot assess the potential impact on its financial statements.

The current investigation concerns whether the Company's Board of Directors breached its fiduciary duties to the Company's shareholders in connection with the unauthorized financial transactions. According to reports, the two dismissed employees charged millions of dollars worth of merchandise to personal credit card accounts which they paid using several large wire transfers originating from a Koss bank account. The Company's Chief Executive Officer reportedly found several large piles of merchandise in the office of at least one of the two dismissed employees.

If you purchased the common stock of Koss during the period of fiscal 2006 through the present and wish to obtain additional information about this matter or wish to provide information, please contact Aaron Brody, Esq. at Stull, Stull & Brody by calling 1-800-337-4983 or 1-212-687-7230, or by email to [ ssbny@aol.com ] or by writing to Stull, Stull & Brody, 6 East 45^th Street, New York, NY 10017. Stull, Stull & Brody has litigated many class actions for violations of securities laws and breaches of fiduciary duty on behalf of defrauded investors over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody has offices in New York and Los Angeles.

Attorney advertising. Prior results do not guarantee a similar outcome.