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Robbins Umeda LLP Announces an Investigation of Rosetta Stone Inc.

  //science-technology.news-articles.net/content/2 .. unces-an-investigation-of-rosetta-stone-inc.html
  Published in Science and Technology on Monday, March 28th 2011 at 15:05 GMT by Market Wire
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SAN DIEGO--([ BUSINESS WIRE ])--Robbins Umeda LLP, a [ shareholder rights litigation ] firm, is interested in helping shareholders of Rosetta Stone Inc. The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Rosetta Stone Inc. (NYSE: RST). Rosetta Stone develops and sells language learning software, online services, and audio practice tools primarily under the Rosetta Stone brand name. The company is incorporated in Delaware and headquartered in Arlington, Virginia.

If you own shares in Rosetta Stone and would like more information about your [ rights as a shareholder ], please contact Gregory E. Del Gaizo at 800-350-6003 or via the [ shareholder information form ] on our website.

Robbins Umeda LLP's investigation is focused on whether the officers and directors of Rosetta Stone issued improper financial statements to the investing public and whether they breached their fiduciary duties. In particular, the officers and directors failed to disclose that the company's customers' inventories were above historic levels and that the company was facing increased competition. As such, Rosetta Stone's results failed to meet its publicly stated expectations, as demonstrated by its February 28, 2010 press release announcing results for the fourth quarter of 2010. The company reported $74.3 million in revenue, a 5% decrease from the prior year period. Further, it reported net income on a Generally Accepted Accounting Principles basis of $5.0 million, or $0.23 per share, a decrease of 60% from the fourth quarter of 2009. On this news, Rosetta Stone's value fell $1.77 per share, or almost 12%, to close at $13.19 per share.

Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career [ shareholder rights attorneys ]. Robbins Umeda LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to [ http://www.robbinsumeda.com ].

Press release link: [ http://www.robbinsumeda.com/shareholders-rights-blog/rosetta-stone/ ]

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