DAKT Class Action Lawsuit – Daktronics Lawsuit
A DAKT class action lawsuit (Daktronics Class Action Lawsuit) has been filed on behalf of investors who purchased Daktronics Class Action Lawsuit (DAKT) securities between March 10, 2022 – December 6, 2022, inclusive. For more on the DAKT Lawsuit please contact us today.
Is There A DAKT Class Action Lawsuit?
SGLY:DAKT Class Action Lawsuit (Daktronics) was filed on December 21, 2022 on behalf of the shareholders.
On August 31, 2022, Daktronics issued a press release announcing its first quarter 2023 results.
Therein, the company 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.”
The Company also reported that gross profit as a percentage of net sales was 15%, which was lower compared to 22% a year earlier.
Operating expenses were $31.3 million, compared to $26.5 million a year earlier. And operating margin for the first quarter of fiscal 2023 was negative 3.2%, compared to positive 3.9% for the first quarter of fiscal 2022.
On this news, Daktronics’ share price fell $0.91, or 22.1% to close at $3.20 per share on August 31, 2022, thereby injuring investors.
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 Form 10-Q for the period ended October 29, 2022, and that there is “substantial doubt” about the Company’s ability to continue as a going concern.
Daktronics also disclosed that it recorded a valuation allowance of approximately $13.0 million for deferred tax assets, which “created a covenant violation under our line of credit agreement.”
As a result, the Company “also expects to conclude that its disclosure controls and procedures and internal control over financial reporting were not effective as a result of material weaknesses.”
On 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.
What is The Daktronics Lawsuit About?
The Daktronics Class Action Lawsuit (NASDAQ:DAKT) (Daktronics Class Action Lawsuit) was filed on December 21, 2022.
On August 31, 2022, Daktronics issued a press release announcing its first quarter 2023 results.
Therein, the company 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.” The Company also reported that gross profit as a percentage of net sales was 15%, which was lower compared to 22% a year earlier.
Operating expenses were $31.3 million, compared to $26.5 million a year earlier. And operating margin for the first quarter of fiscal 2023 was negative 3.2%, compared to positive 3.9% for the first quarter of fiscal 2022.
On this news, Daktronics’ share price fell $0.91, or 22.1% to close at $3.20 per share on August 31, 2022, thereby injuring investors.
How Much Did Shareholders Lose In DAKT Stock?
Shareholders who held Daktronics’ ordinary share price fell $0.91, or 22.1% to close at $3.20 per share on August 31, 2022, thereby injuring investors.
Moreover, Daktronics’ share price fell $1.30, or 39.2%, to close at $2.02 per share on December 7, 2022.
Is There A Deadline For The DAKT Lawsuit?
The deadline for Daktronics Class Action Lawsuit (NASDAQ:DAKT) (Daktronics) is February 21, 2023 for a Lead Plaintiff.
What Is The Daktronics Lawsuit Complaint?
According to the Daktronics lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(1) that the Company was experiencing challenges that increased costs, including supply chain disruptions, that impacted Daktronics’ ability to fund inventory levels and operations;
(2) that, as a result, it was probable that some portion of the Company’s deferred tax assets would not be realized;
(3) that as a result, Daktronics was reasonably likely to record a material valuation allowance to its deferred tax assets;
(4) that there were material weaknesses in the Company’s internal controls over financial reporting related to income taxes;
(5) that the foregoing presented liquidity concerns and there was substantial doubt as to the Company’s ability to continue as a going concern;
(6) and that as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you suffered a loss in DAKT, you have until February 21, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Class Action Lawsuit Attorney
Levi & Korsinsky LLP, Securities Class Action Attorney, for over the past 20 years, has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired DAKT securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The DAKT class-action lawsuit is directed by the lead plaintiff. To litigate the Daktronics Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the Daktronics.
What Does DAKT Do?
Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide.
It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation; indoor and outdoor light emitting diodes (LED) video displays, including centerhung, landmark, ribbon board, and corporate office entrance displays, as well as video walls and hanging banners; mobile and modular display systems; architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms.
It also provides control components for video displays in live event applications; message displays; ITS dynamic message signs, including LED displays for road management; mass transit displays; and sound systems for indoor and outdoor sports venues. In addition, the company offers out-of-home advertising displays comprising digital billboards and street furniture displays; DataTime product line that consists of outdoor time and temperature displays; and Fuelight digit displays designed for the petroleum industry.
Further, it provides ADFLOW DMS systems that include indoor networked solutions for retailers, convenience stores, and other businesses; and Venus Control Suite, Show Control, Vanguard, and others, as well as maintenance and professional services related to its products.
The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is headquartered in Brookings, South Dakota.
