NEW YORK, Feb. 20, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against LeapFrog Enterprises, Inc. ("LeapFrog" or the "Company") (NYSE:LF) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 15-cv-00478, is on behalf of a class consisting of all persons or entities who purchased LeapFrog securities between May 5, 2014 and January 22, 2015, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased LeapFrog securities during the Class Period, you have until March 24, 2015 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 Robert S. Willoughby at rswilloughby@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, telephone number, and number of shares purchased.
LeapFrog is a developer of educational entertainment for children. The Company's product portfolio consists of multimedia learning platforms and related content, and learning toys.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing a decline in consumer demand; (2) the Company's new LeapTV video game system launch and shipment was delayed by developmental issues; (3) retailers were overstocked with the Company's LeapPad products; (4) as a result, the Company lacked a reasonable basis for its financial guidance; and (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On January 22, 2015, after the market closed, LeapFrog announced preliminary financial results for its 2014 fiscal third quarter. These financial 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.
On 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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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 70 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 class members. See www.pomerantzlaw.com.