LeapFrog Enterprises Inc, trading as LF on NYSE dropped to $2.35 a share earlier, down in a straight line from a $2.57 opening today, and from a $12 peak two years ago (a 80.41% loss).
Morgan & Morgan announced yesterday that a class action lawsuit has been filed in United States District Court for the Northern District of California on behalf of purchasers of LeapFrog Enterprises, Inc. (NYSE:LF) common stock during the period between May 5, 2012 and January 22, 2015 (the "Class Period"). Any parties that purchased LeapFrog shares during the Class Period may send a request to be appointed by Court as lead plaintiff of the proposed class no later than March 24, 2015.
The complaint charges LeapFrog and certain of its officers and directors with making materially false and/or misleading statements and/or failing to disclose that: (1) the Company was experiencing a decline in consumer demand; (2) the launch and shipment of the Company's LeapTV game system was delayed by issues with development; and (3) retailers were overstocked with the Company's LeapPad products. As a result, the Company lacked a reasonable basis for financial guidances it had released.
Other than investment fraud, LeapFrog is in the business of plying proprietary hardware on unsuspecting children worldwide.
This recent debacle comes as the latest in a long string of similar blow-ups, all involving the dubious fiat currency known as "USD" (or United States Dollars) – a novelty item consisting of little more than printed bits of cotton paper. Some still believe the printing somehow confers it some sort of relationship to value. Unsurprisingly, gullibillity on such scale attracts the criminal element, and here we are. For this, among other reasons (lack of cryptographical verification, anonymity problems, a host of physical difficulties such as bulk that make it impossible to scale and so on), it seems altogether improbable that the USD will be able to maintain itself as a going concern.