SOURCE: Brower Piven, A Professional Corporation

January 22, 2010 10:24 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $250,000 From Investment in Koss Corporation to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 16, 2010 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - January 22, 2010) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Wisconsin on behalf of purchasers of the securities of Koss Corporation ("Koss" or the "Company") (NASDAQ: KOSS) during the period between July 12, 2005 and December 21, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 16, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard.

The Complaint charges Koss and certain of the Company's current and former executive officers with violations of federal securities laws. Koss designs, manufactures and markets high-fidelity stereophones, computer headsets, speaker-phones, telecommunications headsets, active noise canceling stereophones, wireless stereophones and compact disc recordings of American Symphony Orchestras on the Koss Classics label. The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that certain Company employees had devised and carried out a scheme to defraud investors and divert Company funds potentially exceeding $31 million and that the Company's financial statements and corporate bank account balances had been manipulated to conceal the diversion of those funds such that the Company's financials were overstated. The complaint also alleges that on December 21, 2009, Koss announced that NASDAQ halted trading of Koss stock at the Company's request after it discovered unauthorized transactions and that the Board of Directors had appointed a special committee of independent directors to lead an internal investigation to determine the effect of the transactions on Koss's financial statements. Further the complaint alleges that on December 24, 2009, the Company announced that its Principal Accounting Officer had been terminated and two members of its accounting staff who served under her had been placed on unpaid administrative leave. According to the complaint, Koss later announced that it had dismissed Grant Thornton LLP as its independent auditors and that its financial statements issued for the fiscal years ended June 30, 2005 through 2009 and the three months ended September 30, 2009, should no longer be relied upon due to the unauthorized financial transactions. Also according to the complaint, after Koss shares resumed trading on January 11, 2009, the value of those shares declined substantially.

If you have suffered a net loss for all transactions in Koss Corporation securities during the Class Period (including shares or possibly calls purchased during, but not sold until after the end of the Class Period or possibly put options sold but not covered until after the end of the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/415-6616
    Email Contact