Jan. 07, 2013 (Shareholders Foundation) -- An investigation on behalf of investors of Skullcandy Inc (NASDAQ:SKUL) shares over potential securities laws violations in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Skullcandy Inc (NASDAQ:SKUL) concerning whether a series of statements by Skullcandy Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Skullcandy Inc (NASDAQ:SKUL) reported that its annual Revenue rose from $160.58 million in 2010 to $232.47 million in 2011 and its Net Loss of $9.69 million in 2010 turned into a Net Income of $18.62 million in 2011.

Then on November 1, 2012, Skullcandy Inc announced its financial results for the quarter that ended on September 30, 2012.

Shares of Skullcandy Inc (NASDAQ:SKUL) declined from $12.36 per share on October 26, 2012 to $9.18 per share on November 5, 2012.

Then on Jan 2, 2013 an analyst downgraded Skullcandy Inc along with other companies.

Following the downgrade shares of Skullcandy Inc (NASDAQ:SKUL) declined from $8.10 on Dec. 31, 2012 to $6.65 per share on Jan. 2, 2013.

On Jan 7, 2013, NASDAQ:SKUL shares closed at $6.74 per share, which is significantly below its current 52 week high of $17.76 per share