BENSALEM, Pa., May 6, 2021 /PRNewswire/ -- Law Offices of Howard G. Smith reminds investors of the upcoming June 15, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Franklin Wireless Corp. ("Franklin" or the "Company") (NASDAQ: FKWL) securities between September 17, 2020 and April 8, 2021 inclusive (the "Class Period").
Investors suffering losses on their Franklin investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
Franklin purports 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] been notified of reports of battery issues in some of its wireless hotspot device." It also stated that the Company was "working with its battery and device manufacturing partners and carrier customer to determine the cause and extent of the problem."
On this news, the Company's share price fell $0.35, or 1.65%, to close at $20.77 per share on April 5, 2021, the next trading session, on unusually heavy trading volume.
On April 8, 2021, media reported that Verizon Wireless is recalling certain hotspot devices.
According to CNBC, Verizon "is recalling 2.5 million hotspot devices after discovering that the lithium ion battery can overheat, creating a fire and burning hazard." Moreover, the "recall impacts Ellipsis Jetpack mobile hotspots imported by Franklin Wireless Corp and sold between April 2017 and March 2021."
On this news, the Company's share price fell $2.82, or 14%, to close at $17.33 per share on April 8, 2021, on unusually heavy trading volume.
On April 9, 2021, Franklin stated that its customer Verizon Wireless "has issued a voluntary recall of its Jetpack Hotspot devices imported by Franklin." The Company stated that "[a]t this time, fewer than 20 report of trouble have been received with over 2 million devices in [sic] sold over the last three and a half years."
On this news, the Company's share price fell $4.07, or nearly 23%, to close at $13.26 per share on April 9, 2021, on unusually heavy trading volume.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Franklin's hotspot devices suffered from battery issues, including overheating, thereby presenting a fire hazard; (2) that, as a result, it was reasonably likely that the Company's customers would recall Franklin's devices; (3) that, as a result, Franklin would suffer reputational harm; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Franklin securities during the Class Period, you may move the Court no later than June 15, 2021 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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SOURCE Law Offices of Howard G. Smith