According to the docket, this case was voluntarily dismissed on May 23, 2007. Similar cases were also voluntarily dismissed within the Northern District of Texas, but no consolidated cases have been announced at this time.
According to a press release dated March 16, 2007, the complaint charges RadioShack and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company primarily engages in the retail sale of consumer electronics goods and services through the RadioShack store chain and non-RadioShack branded kiosk operations.
The complaint alleges that defendants issued highly positive but false statements about RadioShack’s inventory wireless business, new store format and the Company’s future prospects. Defendants’ false statements inflated RadioShack’s stock price from about $20 per share just before the start of the Class Period on January 14, 2003 to over $30 per share by mid-November 2003 and then to a Class Period high of $35.41 on February 19, 2004. The complaint alleges that defendants took advantage of this artificial inflation and sold over 500,000 shares of the RadioShack stock they owned at an average price of $31 per share for illegal insider proceeds of over $17 million. The complaint alleges that defendants knew that their positive statements were false because, among other things, the Company was knowingly carrying millions of dollars worth of excess and obsolete inventory. RadioShack stock declined to about $15 per share as the truth leaked into the market.