Class Action Lawsuit News

Stull, Stull & Brody Announces Class Action Against Audible, Inc.

Stull, Stull & Brody Announces Class Action Against Audible, Inc.: "
NEW YORK--(BUSINESS WIRE)--April 12, 2005--Notice is hereby given that a class action lawsuit was filed on April 11, 2005 in the United States District Court for the District of New Jersey, against Audible, Inc. ('Audible' or the 'Company') (Nasdaq:ADBL), Donald R. Katz ('Katz') and Andrew P. Kaplan ('Kaplan'), senior executives officers and/or directors of Audible, on behalf of purchasers of Audible securities between November 2, 2004 and February 15, 2005, inclusive (the 'Class Period'). Also included are all those who acquired Audible's shares in the secondary offering on November 18, 2004.

The complaint charges that Audible violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that Audible reported increased revenues and earnings, growth that defendants represented would continue as the Company capitalized on increasing demand for its products and a growing customer based. Throughout the Class Period, defendants failed to disclose that: (i) Audible's growth could not continue without material investments in expensive strategic initiatives that would severely erode the Company's earnings in the foreseeable future; and (ii) Audible was about to embark on expensive strategic initiatives that would constitute a material risk to the Company's growth and its stock price." (Full story at link)

posted by Monkeyman @ 9:31 AM