This is a securities fraud class action lawsuit against Daktronics Inc. and certain officers and directors.
The class action complaint alleges that the representations contained in Daktronics' press releases, SEC filings, conference calls and presentations during the Class Period were materially false and misleading when made because they failed to disclose:
(i) that Daktronics was experiencing softness in its digital billboard and sports markets and was not performing according to internal expectations;
(ii) that several of Daktronics' large orders were being delayed;
(iii) that Daktronics was unable to control its operating expenses; and
(iv) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Daktronics, its prospects and revenue growth rate.
According to the complaint, on April 5, 2007, after the markets closed, Daktronics issued a press release revising its fiscal fourth quarter 2007 estimates and giving its initial order growth guidance for fiscal year 2008. Upon this news, the price of Daktronics common stock fell $5.78 per share, or approximately 20%, to close at $22.13 per share, on heavy trading volume.
Name (Stock Symbol)
Daktronics, Inc. (DAKT)
Daktronics, Inc., through its subsidiaries, engages in the design, manufacture, marketing, and support of electronic scoreboards, large electronic display systems, and related marketing services.
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