DALLAS, Jan. 12, 2010 (GLOBE NEWSWIRE) -- The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the law firm of Cash Powers Taylor, LLP are investigating potential legal claims available to shareholders of Koss Corporation (Nasdaq:KOSS) relating to recent embezzlement charges lodged against one of the Company's key officers.
If you currently own Koss stock purchased in calendar years 2004 through 2009 and would like additional information regarding this investigation, or if you have information regarding the allegations against the Company, please contact Patrick Powers at Cash Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@cptlawfirm.com, or The Briscoe Law Firm at (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
Koss Corporation, headquartered in Milwaukee, Wisconsin, markets a line of stereophone, speaker-phones, computer headsets, telecommunications headsets, active noise canceling stereophones, wireless stereophones and compact disc recordings. On December 24, 2009, Koss issued a press release announcing that Sujata Sachdeva, the Company's Secretary and Vice President of Finance, had been terminated in connection with the discovery of unauthorized financial transactions by Sachdeva. In addition, it was announced that two members of the Company's accounting staff who served under Sachdeva were placed on unpaid administrative leave. Soon thereafter, on December 31, 2009, Koss dismissed the Company's auditor, Grant Thornton LLP.
On January 5, 2010, Koss announced that the scope of the Company's investigation of unauthorized financial transactions by Sujata Sachdeva, the Company's former Vice President of Finance and Secretary, has been expanded to include fiscal years 2005 through the present. Preliminary estimates by the Company indicate that the amount of unauthorized transactions since fiscal year 2005 through the present exceeds $31 million. The amount of money that Sachdeva is accused of stealing over two years is tremendous for a company the size of Koss. To illustrate: in the Company's fiscal year ended June 30, 2009, Koss reported making only $2 million on $38.2 million in sales.
Beyond the financial impact of the alleged theft, the Company faces serious accounting and control issues. Koss has announced that it will have to restate its financial statements for at least the last three fiscal years.
The Briscoe Law Firm is a full service business litigation, commercial transactions, and public advocacy firm. Collectively, the firm has more than 20 years of experience managing client legal issues in complex litigation and transactional matters. Cash Powers Taylor, LLP is a boutique litigation and corporate transactional law firm that handles a variety of complex commercial and business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, high-profile business disputes, and shareholder derivative suits and security class actions.