CASES
Kid Brands, Inc.
Class Period: Mar 26, 2010 to Mar 15, 2011
Lead Plaintiff Deadline: May 23, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Kid Brands, Inc, (KID) ("Kid" or the "Company") on behalf of On behalf of purchasers of the common stock of Kid Brands, Inc. from March 26, 2010 through March 15, 2011, inclusive.
The Complaint alleges as follows: On March 15, 2011, Kid Brands issued a release announcing the termination of two high-level executives at its LaJobi subsidiary and admitting to a violation of United States Customs laws. The release further explained: The Board's investigation has found instances at LaJobi in which incorrect import duties were applied on certain wooden furniture imported from vendors in China, resulting in a violation of anti-dumping regulations. On the basis of the investigation, the Board concluded that there was misconduct involved on the part of certain LaJobi employees in connection with the incorrect payment of duties, including misidentifying the manufacturer and shipper of products. The ongoing investigation is also focusing on certain of LaJobi's business and staffing practices in Asia.. The Company currently estimates that it will incur costs of approximately $7 million relating to customs duty owed and may be assessed a penalty of up to 1x customs duty by U.S. Customs as well as possibly being subject to assessment for additional duties on other items.
As a result of the foregoing disclosure, Kid Brands' stock plummeted from a closing price of $9.24 per share on March 14, 2011 to a close of $6.91 per share on March 15, 2011, a decline of over 25%, after experiencing an intra-day low of $6.57 per share, on heavy trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.