Possible Class-Action Lawsuit Against Koss

Two East Coast law firms are seeking plaintiffs in possible class-action lawsuits against Koss Corp. for possible securities law violations after the company said an embezzlement case may cause it to restate financial statements going back to 2006.

Koss Corp. fired its VP of finance, Sujata Sachdeva, after the company discovered unauthorized financial transactions that may exceed $20 million. Sachdeva appeared in U.S. district court last week on charges of using interstate wire communications to defraud the company of more than $4.5 million since 2008.

Koss Corp. also announced that its financial statements since January 2006 are no longer reliable. The law firms are seeking anyone who has purchased shares of Koss since January 2006 to possibly participate in a suit.

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