PHILADELPHIA, PA / ACCESSWIRE / December 23, 2022 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Daktronics, Inc. ("Daktronics") (NASDAQ:DAKT) on behalf of those who purchased Daktronics securities between March 10, 2022 and December 6, 2022 inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Daktronics securities during the Class Period may, no later than February 21, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/daktronics-inc/
Daktronics designs and manufactures electronic scoreboards, programmable display systems, and large screen video displays for sporting, commercial, and transportation applications.
Starting on August 31, 2022, Daktronics issued a press release announcing its first quarter 2023 results. Therein, Daktronics reported that it experienced "multiple material supply chain disruptions, labor shortages, and a shutdown of our facilities in Shanghai, China for a significant portion of the quarter." Following this news, Daktronics' share price fell $0.91, or 22.1% to close at $3.20 per share on August 31, 2022.
Then, on December 6, 2022, after the market closed, Daktronics filed a Form 12b-25 with the SEC stating that it would be unable to timely file its Quarterly Report on a Form 10-Q for the period ended October 29, 2022, and that there is "substantial doubt" about its ability to continue as a going concern. Following this news, Daktronics' share price fell $1.30, or 39.2%, to close at $2.02 per share on December 7, 2022, thereby injuring investors.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) Daktronics was experiencing challenges that increased costs, including supply chain disruptions, that impacted its ability to fund inventory levels and operations; (2) as a result, it was probable that some portion of Daktronics's deferred tax assets would not be realized; (3) as a result, Daktronics was reasonably likely to record a material valuation allowance to its deferred tax assets; (4) there were material weaknesses in Daktronics's internal controls over financial reporting related to income taxes; (5) the foregoing presented liquidity concerns and there was substantial doubt as to Daktronics's ability to continue as a going concern; (6) and as a result of the foregoing, the defendant's positive statements about Daktronics's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(215) 875-3093
[email protected]
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
SOURCE: Berger Montague