|Court:||United States District Court for the Northern District of California|
|Class Period:||08/07/2018 - 11/05/2019|
|Case Leaders:||John C. Browne, Lauren A. Ormsbee|
|Case Team:||Alexander T. Payne, Jonathan G. D’Errico|
This securities class action was filed on behalf of all persons or entities who purchased or otherwise acquired the securities of Plantronics, Inc. (“Plantronics” or “the Company”) between August 7, 2018 and November 5, 2019, inclusive (the "Class Period"). The action, filed in the United States District Court for the Northern District of California, alleges that Plantronics and certain senior executives falsely and misleadingly represented to investors that the Company’s positive revenue results were driven by acquisition synergies and organic customer demand for Plantronics’ products when, in truth, the Company’s revenue results were the direct biproduct of an undisclosed sales practice involving “channel stuffing.”
On November 5, 2019, Plantronics disclosed a $65 million reduction in channel inventory “by reducing sales to channel partners” and significantly lowered its fiscal 2020 guidance. The same day, Plantronics announced that the Executive Vice President of Global Sales, Jeff Loebbaka, was departing the Company. On that news, Plantronics’ common stock fell $14.44 per share, or 36.61%, from a closing price of $39.44 on November 5, 2019, to close at $25.00 per share on November 6, 2019, on extremely elevated trading volume.
On February 13, 2020, the Honorable Jon S. Tigar appointed Bernstein Litowitz co-Lead Counsel, representing Roofers' Pension Fund as co-Lead Plaintiff. On June 5, 2020, Lead Plaintiffs filed an amended complaint. Defendants moved to dismiss the amended complaint on August 7, 2020, and Lead Plaintiffs filed an opposition to this motion on October 2, 2020. Defendants filed a reply brief in further support of their motion to dismiss on November 16, 2020. On March 29, 2021, the Court dismissed the amended complaint without prejudice.
Lead Plaintiffs filed their second amended complaint on June 22, 2021. Defendants moved to dismiss the second amended complaint on September 7, 2021, and Lead Plaintiffs filed an opposition to this motion on November 5, 2021. Defendants filed a reply brief in further support of their motion to dismiss on December 13, 2021. On August 17, 2022, the Court sustained in large part the second amended complaint, granting in part and denying in part Defendants’ motion to dismiss. The parties have proceeded to discovery.
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