SOURCE: Izard Nobel LLP

January 21, 2010 16:38 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Koss Corporation

WEST HARTFORD, CT--(Marketwire - January 21, 2010) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Wisconsin on behalf of those who purchased or otherwise acquired the stock of Koss Corporation ("Koss" or the "Company") (NASDAQ: KOSS) between July 12, 2005 and December 21, 2009, inclusive (the "Class Period").

The Complaint charges that Koss certain of its executives violated federal securities laws. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (i) that certain Company employees had devised and carried out a scheme to defraud investors and divert Company funds potentially exceeding $31 million; (ii) that the Company's financial statements and corporate bank account balances had been manipulated to conceal the diversion of corporate funds; (iii) that, as a result, the Company's financial results were overstated during the Class Period; (iv) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (v) that the Company lacked adequate internal and financial controls; and (vi), as a result of the above, that the Company's financial statements were materially false and misleading at all relevant times.

If you are a member of the class, you may, no later than March 16, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/koss/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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