WASHINGTON, April 28, 2005 (PRIMEZONE) -- The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and other similarly situated purchasers of the securities of LeapFrog Enterprises, Inc. (NYSE:LF); ("LeapFrog" or the "Company") from February 11, 2004, through October 18, 2004, inclusive (the "Class Period"), in the United States District Court for the Northern District of California.
The complaint charges LeapFrog and certain of its officers and directors (collectively the "defendants") with violations of the Securities Exchange Act of 1934 resulting from defendants' false and misleading statements and omissions, which artificially inflated the price of LeapFrog's stock during the Class Period, causing harm to LeapFrog's investors.
The Complaint alleges that throughout the Class Period, defendants continually assured investors that LeapFrog had taken the necessary steps to correct the problems in its IT systems and supply chain infrastructure (and that these efforts had been successful) and misrepresented and/or failed to disclose that: (i) the Company had not in fact materially improved either its IT systems or its supply chain infrastructure; and (ii) these issues were continuing to have a materially negative effect on its business and on its ability to accurately forecast results and meet analysts' sales and earnings expectations.
The Complaint claims that on October 18, 2004, LeapFrog announced that its 2004 earnings would miss its estimates by more than 60% due, in large part, to its failure to correct the IT and supply chain problems it said it had taken steps to correct. The announcement prompted a large sell-off of LeapFrog shares, which fell 34% in a single day, to a then all-time low of $11.99. Since then, LeapFrog has also missed fourth quarter estimates by a wide margin and replaced three members of its senior management, including its Chief Financial Officer and Chief Operating Officer.
If you purchased or acquired LeapFrog securities during the Class Period, you may, no later than June 27, 2005, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff.
Any member of the purported class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. To view a copy of the Complaint, you may visit the firm's website at www.cmht.com.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Kari Fiore
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower -- Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
E-mail: stoll@cmht.com or kfiore@cmht.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.