NEW YORK, Jan. 18, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Daktronics, Inc. (“Daktronics” or the “Company”) (NASDAQ: DAKT). A complaint has been filed on behalf of investors who purchased or otherwise acquired Daktronics securities between March 10, 2022 and December 6, 2022, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Daktronics securities during the Class Period and would like to discuss this case or our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003 or our toll free number 1 (800) 290-1952.
If you are a member of the proposed Class, you may move the court no later than February 20, 2023 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
According to the complaint, on December 6, 2022, Daktronics disclosed that it would be unable to timely file its Quarterly Report on Form 10-Q for the period ended October 29, 2022, and that there is "substantial doubt" about the Company's ability to continue as a going concern. Daktronics also disclosed that it recorded a valuation allowance of approximately $13.0 million for deferred tax assets which "created a covenant violation under our line of credit agreement." The Company further disclosed that "[i]n light of the substantial doubt in our ability to continue as a going concern and our related evaluation of the income tax implications of reaching this conclusion, the Company also expects to conclude that its disclosure controls and procedures and internal control over financial reporting were not effective as a result of material weaknesses."
On this news, Daktronics' stock price fell $1.30 per share, or more than 39%, to close at $2.02 per share on December 7, 2022.
The complaint alleges that during the Class Period, Defendants failed to disclose to investors (1) that the Company was experiencing challenges that increased costs, including supply chain disruptions, (2) that, as a result, it was probable that some portion of the Company’s deferred tax assets would not be realized, (3) that as a result, Daktronics was reasonably likely to record a material valuation allowance to its deferred tax assets, (4) that there were material weaknesses in the Company’s internal controls over financial reporting related to income taxes, (5) that the foregoing presented liquidity concerns and there was substantial doubt as to the Company’s ability to continue as a going concern, and (6) that as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
