A securities class action complaint has been filed against Virginia-based Rosetta Stone, Inc. (NYSE: RST) in the United States District Court for the Eastern District of Virginia. The lawsuit, filed on behalf of all purchasers of Rosetta Stone common stock from the period of February 25, 2010 to March 1, 2011, alleges that the language education company failed to disclose adverse facts about the company’s true financial condition, business, and prospects. Specifically, the company did not disclose that it faces intense competition for its products and that the favorable sales booking numbers Rosetta Stone reported were due to key retail partners maintaining inventory of the company’s products well above historic levels.
http://www.classactioncentral.com/2011/03/shareholder-sues-rosetta-stone-over-false-and-misleading-statements/