According to a press release dated November 07, 2008, the 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 the Company was experiencing softness in its digital billboard and sports markets and was not performing according to internal expectations; (ii) that several of the Company’s large orders were being delayed; (iii) that the Company 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 the Company, its prospects and revenue growth rate.
According to the complaint, on April 5, 2007, after the markets closed, the Company 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.
The judge entered an order on February 27, 2009, consolidating related cases, appointing a union and two individual investors as lead plaintiffs, and approving their selection of lead counsel.
On April 13, 2009, an amended consolidated class action complaint was filed with the court.
On June 09, 2010, it was Ordered that the Motion to Dismiss was granted without prejudice with leave for the plaintiff to amend within 20 days.
On July 13, 2010, the amended consolidated complaint was dismissed on the merits with prejudice.