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Kendall Law Group Investigates Possible Securities Violations by Koss Corporation

^{Published on 2010-01-06 17:20:08 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--Kendall Law Group, founded by a former federal judge, today began a shareholder investigation for Koss Corporation (NASDAQ: KOSS) shareholders who have purchased stock since June 30, 2005. The investigation for possible securities law violations is triggered by recent announcements made by Koss concerning its internal investigation for unauthorized financial transactions.

"previously issued financial statements on Forms 10-K for the fiscal years ended June 30, 2006, 2007, 2008 and 2009 and on Form 10-Q for the three months ended September 30, 2009 should no longer be relied upon because of the discovery of unauthorized financial transactions."

On December 24, 2009, Koss issued a press release announcing that Sujata Sachdeva, Secretary and Vice President of Finance, had been terminated due to the discovery of unauthorized financial transactions. Also, two other members of the company's accounting staff were placed on unpaid administrative leave. According to the Company, "previously issued financial statements on Forms 10-K for the fiscal years ended June 30, 2006, 2007, 2008 and 2009 and on Form 10-Q for the three months ended September 30, 2009 should no longer be relied upon because of the discovery of unauthorized financial transactions."

On January 4, 2010, the Company reported that the "Audit Committee had expanded the scope of the disclosed internal investigation of unauthorized financial transactions by Sujata Sachdeva, the Company's former Vice President of Finance and Secretary, to include fiscal years 2005 through the present. The Company has now concluded that its previously issued financial statements on Forms 10-K for the fiscal years ended June 30, 2005 through 2009 and on Form 10-Q for the three months ended September 30, 2009 should no longer be relied upon due to the unauthorized financial transactions."

Koss also reported that "Preliminary estimates indicate that the amount of unauthorized transactions since fiscal year 2005 through the present has exceeded $31 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 promptly as possible, the Company plans to restate its financial statements for applicable periods as further investigation indicates."

If you purchased Koss common stock during the relevant time period and have suffered a loss, you may have a claim against the company. For information about those claims, contact attorney Hamilton Lindley at 877-744-3728 or by email at [ hlindley@kendalllawgroup.com ].

Kendall Law Group has substantial experience representing investors in securities lawsuits nationwide. Lawyers at the firm include a former state and federal judge, a former United States Attorney, and experienced securities lawyers.