HARTFORD, Conn., March 19, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., 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 Northern District of Texas on behalf of all persons who purchased or otherwise acquired the common stock of RadioShack Corporation ("RadioShack" or the "Company") (NYSE:RSH) between January 14, 2003 and June 7, 2006, inclusive, (the "Class Period").
The Complaint alleges that RadioShack and certain of its officers and directors violated Federal Securities laws by issuing highly positive but false statements about RadioShack's inventory wireless business, new store format and the Company's future prospects. Defendants' false statements inflated RadioShack's stock price from about $20 per share just before the start of the Class Period on January 14, 2003 to over $30 per share by mid-November 2003 and then to a Class Period high of $35.41 on February 19, 2004. The complaint alleges that defendants took advantage of this artificial inflation and sold over 500,000 shares of the RadioShack stock they owned at an average price of $31 per share for illegal insider proceeds of over $17 million. It is alleged that defendants knew that their positive statements were false because, among other things, the Company was knowingly carrying millions of dollars worth of excess and obsolete inventory. RadioShack stock declined to about $15 per share as the truth leaked into the market.
If you are a member of the class, you may, no later than May 15, 2007, 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, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. 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, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snlaw.net.