According to a press release posted on the Glancy Binkow & Goldberg LLP website, the Complaint alleges that defendants issued materially false and misleading statements concerning DynaVox’s business, operations and financial prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) the Company was experiencing a softening of demand for its speech generating devices and for its software products; and (2) as a result, the weak demand for the Company’s products would cause DynaVox’s financial results to trend adversely compared to the trends included in the Registration Statement.
On September 30, 2010, DynaVox issued a press release commenting on the Company’s first quarter fiscal 2011 results and disclosed that “the Company experienced a softening of demand for both its speech generating devices and software products. As a result, operating results for the fiscal first quarter will not be consistent with historical performance or indicative of what management believes to be the Company’s long-term future operating potential.”
As a result of this news, shares of DynaVox declined $2.68 per share, or approximately 33%, to close on October 1, 2010 at $5.44 per share, on unusually heavy volume of more than 3.4 million shares traded.
On December 20, 2010, the Court granted the motion for appointment as lead plaintiff and approval of lead counsel.
On February 18, 2011, the Lead Plaintiff received no compensation and voluntarily dismissed the action without prejudice pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(i).