Investigation Overview
An investigation on behalf of investors in DynaVox, Inc. (NASDAQ:DVOX) shares over potential violations of Federal Securities Laws by DynaVox was announced.
DynaVox Inc., located in Pittsburgh, PA, is engaged in developing software, devices and content to assist people in overcoming their speech, language or learning disabilities. The investigation by a law firm focuses on potential claims on behalf of purchasers of the securities of DynaVox Inc. (DVOX) concerning allegations that certain statements made by DynaVox Inc in regards to its business and financial prospects were materially false and/or misleading. The 12 month revenue from DynaVox Inc, which launched an IPO this April, went from $66.16million reported on June 29, 2007 to $114.30million reported on July 02, 2010. Its Net Income went over the same period from $4.90million to $10.10million. On August 25, 2010, the maker of communication and education products for those with language and learning disabilities, had forecast 2011 adjusted earnings of 56 to 62 cents a share, before items, on sales growth of 14 to 17 percent. But then on September 30, 2010, DynaVox Inc. issued a press release stating that during its first quarter of fiscal 2011, DynaVox 'experienced a softening of demand for both its speech generating devices and software products.' As a result, DynaVox Inc announced, it would withdraw its previously issued earnings guidance for fiscal year 2011. A subsequent article published by TheStreet.com noted 'the weakness in DynaVox is striking given the company just went public in late April, selling upwards of 9 million shares at $15 each. The stock is now down 65% off a high of $19.20 on June 16.' Shares of DynaVox, Inc. (NADSAQ: DVOX) traded recently at $5.48 per share.