Cincinnati, OH (PRWEB) August 20, 2012
The law firm of Statman, Harris & Eyrich, LLC announces that shareholders of common stock of RadioShack Corporation ("RadioShack" or the "Company") have until October 1, 2012 to move for lead plaintiff status in the class action lawsuit filed in the United States District Court, Southern District of New York, (Case No. 12 Civ. 6150), on behalf of all persons or entities who purchased or otherwise acquired RadioShack securities between July 26, 2011 and July 24, 2012, inclusive (the "Class Period") (the “Complaint”).
The Complaint alleges violations of federal securities laws against RadioShack Corporation and its present and former officers and directors for issuing false and misleading information about the Company’s financial and business condition. RadioShack is a national retailer of mobility technology products, consumer electronics and accessories. The Complaint alleges that throughout the Class Period, the Company and its Chief Executive Officer and President James F. Gooch ("Gooch") failed to disclose the devastating adverse impact of a corporate strategy to transform RadioShack from its historical roots as seller of consumer electronics and accessories into a reseller of wireless products. According to the claim, RadioShack and Gooch repeatedly emphasized returning value to the shareholders by funding the stock repurchase program and the solid dividends; both of these avenues, however, had to be abruptly halted when the Company recognized their business model was a failure and they needed to save cash.
In its news release dated July 25, 2012, the Company reported that RadioShack's second quarter earnings were a net loss of $21 million, a result of weakened mobility sales, margin erosion and the decision to suspend dividends, which the Company had been paying for 25 years. As a result of this announcement, RadioShack's common stock price dropped, from a closing of $3.65 on July 24, 2012 to $2.60 on July 25, 2012.
Shareholders of RadioShack Corporation during the Class Period who wish to discuss this action are encouraged to contact Brian Giles, Esq. at (513) 345-8181 or at bgiles(at)statmanharris(dot)com for further information without any obligation or cost. Any class member wishing to serve as lead plaintiff and act on behalf of other class members in directing the litigation must move the Court no later than October 1, 2012. However, no action need be taken at this time to be a class member, and any class member may retain counsel of their choice.
Statman, Harris & Eyrich, LLC, which has significant experience in consumer and securities fraud class actions and derivative litigation, has offices in Chicago, Illinois; Cincinnati, Ohio; Dayton, Ohio; and Sarasota, Florida. http://www.statmanharris.com Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT: Statman, Harris & Eyrich, LLC
Brian Giles, Esq.
441 Vine Street, Suite 3700
Cincinnati, Ohio 45202
Phone: (513) 345-8181