LeapFrog Enterprises Inc (NYSE: LF) Investor Securities Class Action Lawsuit 01/23/2015

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Company Name(s): 
LeapFrog Enterprises
Case Name: 
LeapFrog Enterprises Shareholder Class Action Lawsuit 01/23/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSE: LF
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/23/2015
Class Period Begin: 
05/05/2014
Class Period End: 
06/11/2015
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
03/24/2015
Date Settled: 
03/20/2018
Settlement Amount: 
$5,500,000
Deadline to Participate in Settlement: 
08/08/2018
Summary: 

March 20, 2018 - The court preliminarily approved the settlement.

February 23, 2018 - Parties filed a stipulation of settlement.

February 24, 2017 - The court granted in part and denied in part defendants' motion to dismiss.

November 5, 2016 - Defendants filed a motion to dismiss.

September 20, 2016 - The lead plaintiff filed a second amended consolidated complaint.

August 2, 2016 - The court granted defendants' motion to dismiss with leave to amend.

July 24, 2015 - Defendants filed a motion to dismiss.

June 24, 2015 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased LeapFrog Enterprises Inc (NYSE: LF) common shares between May 5, 2014 and June 11, 2015. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between May 5, 2014 and June 11, 2015.

May 5, 2015 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

March 24, 2015 - Lead plaintiff motions were filed.

January 23, 2015 - An investor in shares of LeapFrog Enterprises Inc (NYSE: LF) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by LeapFrog Enterprises Inc in connection with certain allegedly false and misleading statements made between May 5, 2014 and January 22, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of LeapFrog Enterprises Inc (NYSE: LF) common shares between May 5, 2014 and January 22, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between May 5, 2014 and January 22, 2015 defendants made false and/or misleading statements and/or failed to disclose to investors that LeapFrog Enterprises Inc was experiencing a decline in consumer demand, that the launch and shipment of LeapFrog Enterprises Inc’s new LeapTV video game system were delayed by developmental issues, that retailers were overstocked with LeapFrog Enterprises Inc’s LeapPad products, that as a result, LeapFrog Enterprises Inc lacked a reasonable basis for its financial guidance, and that as a result of the foregoing, LeapFrog Enterprises Inc’s statements were materially false and misleading at all relevant times.

On February 12, 2014 LeapFrog Enterprises Inc announced financial results for the fourth quarter and year ended December 31, 2013. LeapFrog Enterprises Inc reported that its annual Total Revenue declined from $581.29 million in 2012 to $553.62 million in 2013 and that its Net Income fell from $86.45 million to $84.01 million.

On May 5, 2014 LeapFrog Enterprises Inc announced financial results for the first quarter ended March 31, 2014. LeapFrog Enterprises Inc reported that its first quarter Revenue declined from $82.93 million in 2013 to $56.88 million in 2014 and that its Net Loss in the first quarter increased from $3.01 million in 2013 to $11.44 million in 2014.

On May 16, 2014 LeapFrog Enterprises Inc announced that the Company's Board of Directors approved a fiscal year-end change from December 31 to March 31. Among other things, LeapFrog Enterprises Inc issued its guidance and said that it expects it Net sales to be in a range of $554 million to $580 million compared to $554 million in 2013.

On, Aug. 4, 2014, LeapFrog Enterprises Inc (NYSE: LF) announced financial results for its first fiscal quarter ended June 30, 2014. 2014 LeapFrog Enterprises Inc reported that its Revenue declined from $82.98 million for the three months that ended on June 30, 2013 to $46.97 million for the three months that ended on June 30, 2014 and that its respective Net Loss increased from $3.29 million to $16.36 million. Among other things, LeapFrog Enterprises Inc revised its guidance and said that it expects it Net sales to be in the range of $480 million to $505 million compared to $528 million for the 12-month period ended March 31, 2014.

On Nov. 3, 2014, LeapFrog Enterprises Inc announced financial results for its second fiscal quarter ended September 30, 2014. LeapFrog Enterprises Inc reported that its Revenue declined from $200.98 million for the three months period that ended on September 30, 2013 to $113.64 million for the three months period that ended on September 30, 2014 and that its Net Income of $26.37 million for the three months period that ended on September 30, 2013 fell to a Net Loss of $2.02 million for the three months period that ended on September 30, 2014. Among other things, LeapFrog Enterprises Inc revised its guidance and said that it expects it Net sales to be in the range of $450 million to $470 million compared to $528 million for the twelve-month period ended March 31, 2014.

On January 22, 2015, LeapFrog Enterprises Inc provided preliminary unaudited fiscal third quarter results for the three-month period ended December 31, 2014. LeapFrog Enterprises Inc said that for its fiscal third quarter that ended on December 31, 2014 its Revenue will be approximately $145 million compared with prior guidance of $220 million to $240 million and that its Net loss will be approximately $124 million, which includes non-cash charges of approximately $20 million for goodwill impairment and approximately $87 million for deferred tax asset valuation allowance. The Chief Executive Officer of LeapFrog Enterprises Inc John Barbour said that “We are very disappointed that our performance in the third quarter was significantly below our expectations and that we will not achieve our fiscal year guidance.”

Shares of LeapFrog Enterprises Inc (NYSE: LF) declined from $11.46 per share in July 2013 to as low as $2.52 per share on January 23, 2015.