FKWL CLASS ACTION NOTICE: Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against Franklin Wireless Corp. (FKWL)
THE ANGEL–(BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the US District Court for the Southern District of California involving Ali v. Franklin Wireless Corp. et al on behalf of persons and entities who purchased securities of Franklin Wireless Corp. between September 17, 2020 and April 8, 2021 inclusive (including the “Class Period”). (“Franklin” or the “Company”) (NASDAQ: FKWL) have purchased or otherwise acquired. Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days from this notification to appoint the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your Franklin investment or would like to inquire about whether you may be able to make claims to recover your loss under federal securities laws, you can find your contact information at https://www.glancylaw.com/cases / submit franklin-wireless -corp /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or by email at Shareholder@glancylaw.com or on our website at www.glancylaw.com for more information about your rights.
Franklin claims to be a leading provider of intelligent wireless solutions such as mobile hotspots, routers, trackers and other devices.
On April 1, 2021, Franklin stated that it “ha[d] was informed of reports of battery problems in some of its wireless hotspot devices. It also stated that the company is “working with its battery and device manufacturing partners and the Carrier customer to determine the cause and extent of the problem.”
In that news, the company’s share price fell $ 0.35, or 1.65%, to close on April 5, 2021, the next trading session, with unusually high trading volume at $ 20.77 per share.
On April 8, 2021, media reported that Verizon Wireless was calling back certain hotspot devices. According to CNBC, Verizon is “recalling 2.5 million hotspot devices after discovering that the lithium-ion battery can overheat, which could result in fire and burns.” The recall also affects Ellipsis portable jetpack hotspots , which were imported by Franklin Wireless Corp and sold between April 2017 and March 2021.
In that news, the company’s share price fell $ 2.82, or 14%, to close at $ 17.33 per share on April 8, 2021 in an unusually high trading volume.
On April 9, 2021, Franklin announced that its customer Verizon Wireless “has issued a voluntary recall of its Franklin imported Jetpack hotspot devices.” The company stated: “[a]At this point in time, fewer than 20 error messages were received with over 2 million devices [sic] sold in the past three and a half years. ”
In that news, the company’s share price fell $ 4.07, or nearly 23%, to close at $ 13.26 per share on April 9, 2021 amid unusually high trading volume.
Throughout the class period, defendants made materially false and / or misleading statements and did not disclose any material adverse facts about the business, business and prospects of the company. In particular, Defendants have failed to advise investors: (1) that Franklin’s hotspot devices suffered from battery problems, including overheating, and were therefore a fire hazard; (2) As a result, it was quite likely that the company’s customers would recall Franklin’s devices. (3) that Franklin would suffer reputational damage as a result; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, business, and prospects were materially misleading and / or unfounded.
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If you have purchased or otherwise acquired Franklin securities during the class period, you may request the court no later than 60 days after such notice to request the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or you can take no action and remain an absent member of the class. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email firstname.lastname@example.org, or visit our website at www.glancylaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.
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