The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Daktronics, Inc. (NASDAQ: DAKT) who purchased shares between March 10, 2022 and December 6, 2022. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
(1) the Company was experiencing challenges that increased costs, including supply chain disruptions, that impacted Daktronics’ ability to fund inventory levels and operations; (2) as a result, it was probable that some portion of the Company’s deferred tax assets would not be realized; (3) as a result, Daktronics was reasonably likely to record a material valuation allowance to its deferred tax assets; (4) there were material weaknesses in the Company’s internal controls over financial reporting related to income taxes; (5) the foregoing presented liquidity concerns and there was substantial doubt as to the Company’s ability to continue as a going concern; and (6) as a result of the foregoing, defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Shareholders have until February 21, 2023 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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