June 22, 2018 - The case was dismissed.

March 21, 2018 - The court granted defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.

July 7, 2017 - A motion to dismiss the amended complaint was filed.

May 8, 2017 - An amended complaint was filed.

February 12, 2016 - An investor in shares of Skullcandy Inc (NASDAQ: SKUL) filed a lawsuit in the U.S. District Court for the District of Utah over alleged violations of Federal Securities Laws by Skullcandy Inc in connection with certain allegedly false and misleading statements made between August 7, 2015 and January 11, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Skullcandy Inc (NASDAQ: SKUL) common shares between August 7, 2015 and January 11, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 7, 2015 and January 11, 2016 defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that the third quarter and full year 2015 revenue and net income guidance issued during the Company's second quarter 2015 earnings announcement and subsequent conference call were materially false and misleading in that the projections were unattainable, that the fourth quarter and full year 2015 revenue and net income guidance issued during the Company's third quarter 2015 earnings announcement and subsequent conference call were materially false and misleading in that the projections were unattainable, that the defendants intentionally failed to timely disclose the Company's challenges with its largest China distributor, that the defendant Rick Alden and Ptarmagin, an entity controlled by Alden, with full knowledge of the undisclosed materially adverse facts alleged herein, embarked on a selling spree of personal holdings of SKUL common stock at artificially inflated prices, which sales they made without first disclosing these adverse material facts known to defendants and withheld from the market, which permitted them to engage in unusual insider selling and realize proceeds in excess of $4 million, and that as a result of the foregoing, defendants' statements about SKUL's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.

Skullcandy Inc reported that its annual Total Revenue rose from $210.09 million in 2013 to $247.81 million in 2014 and that its Net Loss of $3.04 million in 2013 turned into a Net Income of $7.60 million in 2014. Shares of Skullcandy Inc (NASDAQ: SKUL) grew from $6.76 per share in July 2014 to as high as $11.66 per share in early April 2015.

On May 5, 2015, Skullcandy Inc announced its financial results for the first quarter ended March 31, 2015. While Skullcandy Inc reported that its first quarter Revenue rose from $39.08 million in 2014 to $46.19 million in 2015 its Net Loss in the first quarter increased from $3.39 million in 2014 to $3.83 million in 2015. Among other things, Skullcandy Inc also issued its second quarter 2015 and full year 2015 financial outlook.

On January 11, 2016, Skullcandy Inc announced for the fourth quarter, it now expects net sales to be approximately flat with 2014 levels, or increase approximately 2% on a currency neutral basis. Skullcandy Inc said that it had previously forecasted net sales to increase by approximately 5-7%, or approximately 8-10% on a currency neutral basis. Skullcandy Inc also said that the new outlook includes a $1.6 million pre-tax allowance for bad debt charge related to further challenges with a China distributor.

Shares of Skullcandy Inc (NASDAQ: SKUL) declined from $11.66 per share in April 2015 to as low as $2.93 per share on January 19, 2016.