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If you purchased a significant amount of shares of Franklin Wireless Corp. (NASDAQ: FKWL) between September 17, 2020 and April 8, 2021, and / or if you purchased any NASDAQ: FKWL shares prior to September 2020 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: June 15, 2021. NASDAQ: FKWL investors should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
April 16, 2021 - An investor in shares of Franklin Wireless Corp. (NASDAQ: FKWL) filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by Franklin Wireless Corp. in connection with certain allegedly false and misleading statements made between September 17, 2020 and April 8, 2021.
San Diego, CA based Franklin Wireless Corp. provides intelligent wireless solutions. Franklin Wireless Corp. reported that its Total Revenue rose from $36.46 million for the 12 months period that ended on June 30, 2019, to $75.07 million for the 12 months period that ended on June 30, 2020, and that its Net Loss of $1.27 million for the 12 months period that ended on June 30, 2019, turned into a Net Income of $5.55 million for the 12 months period that ended on June 30, 2020.
On April 9, 2021, Franklin Wireless Corp reported that it had been notified “that Verizon Wireless has issued a voluntary recall of its Jetpack Hotspot devices imported by Franklin.” The Company stated that it was “work[ing] with its battery and device manufacturing partners to determine the cause and extent of the concerns.”
Shares of Franklin Wireless Corp. (NASDAQ: FKWL) declined from $22 per share in late March 2021, to as low as $11.87 per share on April 12, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Franklin Wireless Corp. (NASDAQ: FKWL) common shares between September 17, 2020 and April 8, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 17, 2020 and April 8, 2021, the Defendants failed to disclose to investors that Franklin’s hotspot devices suffered from battery issues, including overheating, thereby presenting a fire hazard, that, as a result, it was reasonably likely that the Company’s customers would recall Franklin’s devices, that, as a result, Franklin would suffer reputational harm, and 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.