NEW YORK, Aug. 10, 2012 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a securities class action lawsuit against RadioShack Corporation ("RadioShack" or the "Company") (NYSE:RSH) and certain of its officers. The class action (12 Civ. 6150), filed in the United States District Court, Southern District of New York, is 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"). This class action lawsuit seeks to recover damages caused by the Company's violations of the federal securities laws and to pursue remedies under § 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased RadioShack securities during the Class Period, you have until October 1, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
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. In an attempt to cover-up the true financial realities facing the company, 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.
On July 25, 2012, the Company surprised the market by reporting 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.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.