Rosetta Stone, Inc RST Securities Stock Fraud

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Company: Rosetta Stone, Inc
Ticker Symbol: RST
Class Period: Feb-25-10 to Mar-1-11
Date Filed: Mar-31-11
Lead Plaintiff Deadline: May-30-11
Court: Eastern District of Virginia
New York, NY: A securities lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Virginia on behalf of purchasers of the common stock of Rosetta Stone, Inc. ("Rosetta Stone" or the "Company") (NYSE: RST) between February 25, 2010 and March 1, 2011, inclusive (the "Class Period").

The Complaint charges Rosetta Stone and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges: (i) that Rosetta Stone was facing intense competition for its products, including free competitive product offerings; (ii) that the free and lower priced competitive product offerings, not a temporary reduction in advertising, was having a material adverse effect on the Company's Class Period revenues, particularly U.S. consumer revenues; (iii) that the favorable sales booking numbers Rosetta Stone reported during the Class Period was the result of key retail partners maintaining inventory of the Company's products well above historic levels; and (iv) that Rosetta Stone's reported sales bookings and revenues during the Class Period were the product of manipulation.

On February 28, Rosetta Stone announced fourth quarter revenue of $74.3 million, a 5% decrease from the prior year, net income on a GAAP basis of $5.0 million, a decrease of 60% from the 2009 fourth quarter. On this news, shares of Rosetta Stone fell $1.77 to $13.19 per share.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Rosetta Stone, Inc RST Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Rosetta Stone, Inc securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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