NEW YORK, Feb. 13, 2015 (GLOBE NEWSWIRE) -- In a release issued Tuesday, February 10th by Morgan Securities Law, the date period mentioned in the first paragraph should begin May 5, 2014, not May 5, 2012 as previously reported. The corrected release follows:
Morgan & Morgan announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of LeapFrog Enterprises, Inc. ("LeapFrog" or the "Company") (NYSE:LF) common stock during the period between May 5, 2014 and January 22, 2015 (the "Class Period").
If you purchased LeapFrog shares during the Class Period, you may, no later than March 24, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member
If you want more information about the LeapFrog Shareholder Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
The complaint charges LeapFrog and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LeapFrog designs, develops, and markets technology-based learning products and related proprietary content for children worldwide.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing a decline in consumer demand; (2) the launch and shipment of the Company's LeapTV game system was delayed by issues with development; and (3) retailers were overstocked with the Company's LeapPad products. As a result, the Company lacked a reasonable basis for its financial guidance.
On January 22, 2015, after the market closed, LeapFrog announced its preliminary financial results for the third quarter of 2014. These results were significantly below the Company's stated expectations and financial guidance. According to the Company, LeapFrog's disappointing sales results were related to decreased demand for its products and development issues with the Company's LeapTV educational video game system.
Following this news, shares of LeapFrog declined $1.35 per share, or 34.62%, to close on January 23, 2015, at $2.55 per share, on unusually heavy volume.
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