NEW YORK, June 8, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of LeapFrog Enterprises, Inc. (NYSE:LF) acquiring the stock between February 11, 2004, and October 18, 2004, both dates inclusive (the "Class Period").
The action, entitled, Gentry v. Leap Frog Enterprises, Inc., et al., Case No. 05-cv-02279 (MJJ), is pending in the United States District Court for the Northern District of California, and names as defendants, the Company, its former Chairman and current Chief Executive Officer, Thomas J. Kalinske, and its former Chief Financial Officer, Jim Curely. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented material adverse facts which were known to defendants or recklessly disregarded by them. In particular, the Complaint alleges that during the Class Period, defendants assured investors that LeapFrog had taken necessary steps to correct problems in its IT-systems and supply-chain infrastructure and misrepresented or failed to disclose that the Company had not, in fact, materially improved either its IT-systems or supply-chain infrastructure and these issues were materially and negatively affecting its business and ability to accurately forecast results and meet analysts' sales and earnings expectations. As a consequence of the foregoing, it is alleged that the Company's financial results were materially inflated at all relevant times.
On October 18, 2004, LeapFrog announced that it would miss its 2004 earnings estimates by more than 60%, largely due to its failure to correct the IT and supply-chain problems. On this disclosure, LeapFrog's share price fell 34% in one day to a then all-time $11.99 low. Since then, LeapFrog has also missed fourth quarter estimates and replaced three senior managers, including its CFO and COO.
If you are a member of the class described above, you may, not later than June 27, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca