PHILADELPHIA, July 30, 2012 (GLOBE NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. filed a class action lawsuit in the United States District Court, Southern District of New York, 12-cv-5825 on behalf of all persons who purchased the common stock of RadioShack Corporation (NYSE:RSH), during the period July 26, 2011 through July 24, 2012 against RadioShack Corporation and James F. Gooch for violations of the Securities and Exchange Act of 1934.
The Complaint alleges that RadioShack and Gooch each had a duty to timely, fully and truthfully disclose all material facts and information concerning RadioShack and they did not. Specifically, the complaint alleges that in the beginning of the Class Period, defendants allegedly claimed they were well on their way to executing their strategy to transform RadioShack from its historical roots as a seller of consumer electronics and accessories into a reseller of wireless products. Defendants had begun opening kiosks in Target stores to sell wireless products and had entered into a relationship with Verizon Wireless, the largest wireless provider, to sell Verizon wireless products. In an attempt to cover-up the true financial realities facing the company, Defendants repeatedly emphasized returning value to the shareholders by funding the stock repurchase program and the solid dividends.
However, on July 25, 2012, defendants surprised the market and reported RadioShack's second quarter earnings which were a net loss of $21 million resulting from weakened mobility sales and margin erosion and that the dividends of 25 years were "suspended". As a result of this announcement, the stock dropped precipitously, from a closing of $3.65 on July 24 to $2.60 on July 25, 2012.
If you wish to serve as lead plaintiff, you must move the Court no later than October 1, 2012. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. To discuss this action or any questions concerning this notice, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. A copy of the complaint can be viewed at www.bernardmgross.com.
Plaintiffs are represented by Law Offices Bernard M. Gross, P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.