Science & Technology
Science and Technology
Science and Technology
Thu, April 7, 2011
Wed, April 6, 2011
The Briscoe Law Firm Investigates Rosetta Stone, Inc. on Behalf of Shareholders for Possible Breaches of Fiduciary Duties by it
DALLAS--([ BUSINESS WIRE ])--[ The Briscoe Law Firm, PLLC ], founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the securities litigation firm of [ Powers Taylor, LLP ] are investigating potential legal claims against the officers and Board of Directors of Rosetta Stone, Inc. (aRosetta Stonea) (NASDAQ: RST) during the period of February 25, 2010 through March 1, 2011 (the aClass Perioda).
It has been alleged in a recently filed complaint that during the Class Period, Rosetta Stone and certain of its officers and directors made materially false and misleading statements or failed to disclose material information related to the company's business and operations in violation of the Securities Exchange Act of 1934. Specifically, ita™s alleged that the defendants failed to disclose: (i) that Rosetta Stone was facing intense competition for its products, including free competitive product offerings; (ii) that the free and lower priced competitive product offerings, not a temporary reduction in advertising, was having a material adverse effect on the company's Class Period revenues, particularly U.S. consumer revenues; (iii) that the favorable sales booking numbers Rosetta Stone reported during the Class Period was the result of key retail partners maintaining inventory of the company's products well above historic levels; and (iv) that Rosetta Stone's reported sales bookings and revenues during the Class Period were the product of manipulation. When Rosetta Stone disclosed its fourth quarter revenue, which had decreased 5% for the same period last year, Rosetta Stonea™s stock dropped 12%. Moreover, it is alleged that during the Class Period, certain officers sold shares of Rosetta Stone during the class period at artificially inflated share prices for more than $2.1 million in proceeds.
If you currently own or purchased Rosetta Stone/RST shares and would like additional information regarding this investigation or if you have information regarding the allegations against the company, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [ patrick@powerstaylor.com ], or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at [ WBriscoe@TheBriscoeLawFirm.com ]. There is no cost or fee to you.
The Briscoe Law Firm is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
