Koss Corporation (NASDAQ: KOSS) manufactures headphones and audio accessories.

According to a press release dated January 15, 2010, a class action lawsuit was filed in the United States District Court for the Eastern District of Wisconsin against Koss Corp. The Complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from July 12, 2005 through December 21, 2009.

On May 13, 2010, Judge Lynn Adelman signed the Order granting the motion to appoint David A. Puskala as lead Plaintiff and approved lead Plaintiff's selection of the law firm Glancy Binkow & Goldberg LLP as lead Counsel for the purported class with Ademi & O'Reilly as liaison Counsel. On September 10, 2010, the lead Plaintiff filed an Amended Class Action Complaint, adding the Company's independent auditor as a named Defendant in the action. The Defendants filed two motions to dismiss the Amended Complaint on October 25, 2010.

According to the Decision and Order dated July 28, 2011, it is ordered that Koss Corporation and the company CEO’s motion to dismiss is granted in part and denied in part. The § 10(b) and Rule 10b-5 claim against the company CEO is dismissed. The § 10(b) and Rule 10b-5 claim against Koss Corporation and the § 20(a) claim against the company CEO survive. it is further ordered that Grant Thornton LLP’s motion to dismiss is granted.

On March 9, 2012, the Court issued an Order Preliminarily Approving Settlement And Providing For Notice Of Proposed Settlement.

On July 10, 2012, the Court issued a Final Judgment and Order of Dismissal with Prejudice.