According to the Complaint, Franklin Wireless Corp. purports to be a leading provider of intelligent wireless solutions such as mobile hotspots, routers, trackers, and other devices.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that Franklin’s hotspot devices suffered from battery issues, including overheating, thereby presenting a fire hazard; (2) that, as a result, it was reasonably likely that the Company’s customers would recall Franklin’s devices; (3) that, as a result, Franklin would suffer reputational harm; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On September 15, 2021, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on November 15.
Lead Plaintiff filed a Motion for Class Certification on July 22, 2022. On January 3, 2023, the Court issued an Order granting the Motion for Class Certification.
On May 23, 2023, the parties entered into a Stipulation and Agreement of Settlement.