Lawsuit filed for Investors in shares of Daktronics, Inc. (NASDAQ: DAKT)

An investor, who purchased shares of Daktronics, Inc. (NASDAQ: DAKT), filed a lawsuit over alleged violations of Federal Securities Laws by Daktronics, Inc..

Investors who purchased shares of Daktronics, Inc. (NASDAQ: DAKT) have certain options and for certain investors are short and strict deadlines running. Deadline: February 20, 2023. NASDAQ: DAKT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Brookings, SD based Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide. On August 31, 2022, Daktronics, Inc. announced its first quarter 2023 results. Therein, the company reported that it experienced "multiple material supply chain disruptions, labor shortages, and a shutdown of our facilities in Shanghai, China for a significant portion of the quarter." The Company also reported that gross profit as a percentage of net sales was 15%, which was lower compared to 22% a year earlier. Operating expenses were $31.3 million, compared to $26.5 million a year earlier. And operating margin for the first quarter of fiscal 2023 was negative 3.2%, compared to positive 3.9% for the first quarter of fiscal 2022.

Then, on December 6, 2022, after the market closed, Daktronics, Inc. filed a Form 12b-25 with the SEC stating that it would be unable to timely file its Quarterly Report on Form 10-Q for the period ended October 29, 2022, and that there is "substantial doubt" about the Company's ability to continue as a going concern. Daktronics also disclosed that it recorded a valuation allowance of approximately $13.0 million for deferred tax assets, which "created a covenant violation under our line of credit agreement." As a result, the Company "also expects to conclude that its disclosure controls and procedures and internal control over financial reporting were not effective as a result of material weaknesses."

Shares of Daktronics, Inc. (NASDAQ: DAKT) declined from $5.19 per share on January 13, 2022, to as low as $1.70 per share on December 09, 2022.

The plaintiff claims that between March 10, 2022 and December 6, 2022, the Defendants failed to disclose to investors: (1) that the Company was experiencing challenges that increased costs, including supply chain disruptions, that impacted Daktronics' ability to fund inventory levels and operations; (2) that, as a result, it was probable that some portion of the Company's deferred tax assets would not be realized; (3) that as a result, Daktronics was reasonably likely to record a material valuation allowance to its deferred tax assets; (4) that there were material weaknesses in the Company's internal controls over financial reporting related to income taxes; (5) that the foregoing presented liquidity concerns and there was substantial doubt as to the Company's ability to continue as a going concern; (6) as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.

Those who purchased shares of Daktronics, Inc. (NASDAQ: DAKT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.