Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Virginia on behalf of purchasers of Rosetta Stone, Inc. (NYSE: RST) who purchased stock between February 25, 2010 and March 1, 2011.
New York, NY, March 30, 2011 — Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Virginia on behalf of purchasers of Rosetta Stone, Inc. (NYSE: RST) who purchased stock between February 25, 2010 and March 1, 2011 (the “Class Period”).
The complaint alleges that Rosetta Stone and certain of its officers and/or directors violated the Securities Exchange Act of 1934 by failing to disclose particular facts regarding the Company’s true financial condition, business and prospects. In particular, the complaint alleges that, among other violations: (a) free and lower-priced competitive product offerings, rather than reductions in advertising, had a materially adverse effect on the Company’s revenues; (b) the Company reported sales bookings and revenues that were the direct product of manipulation; (c) based on the allegations above, defendants lacked a reasonable basis for positive statements made regarding Rosetta Stone’s financials.
On February 28, 2010, Rosetta Stone issued a press release announcing its results for the fourth quarter and year ended December 31, 2010. The Company reported a revenue decrease of 5% from the prior year end. Upon this news, shares of Rosetta Stone stock fell $1.77 per share, closing at $13.19 per share.
If you are a member of the class and suffered a loss in Rosetta Stone stock, you have until May 23, 2011 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. To obtain additional information about your rights, contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (877) 363-5972, or visit http://www.zlk.com/rosetta-stone-rst.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Levi & Korsinsky, LLP, Joseph Levi, Esq. Eduard Korsinsky, Esq. 30 Broad Street – 15th Floor, New York, NY 10004, Tel: (212) 363-7500, Toll Free: (877) 363-5972, Fax: (212) 363-7171, www.zlk.com
Contact:
Joanna Chlebus
Levi & Korsinsky, LLP
30 Broad St
15th Floor
New York, NY 10004
212-363-7500
[email protected]
