A lawsuit seeking class action status has been filed in San Francisco at the U.S. District Court for the Northern District of California that alleges certain officers and directors of Sharper Image Corp. violated federal securities laws in connection with sales of common stock between Feb. 4 and Aug. 4 of 2004.
The complaint filed by the law firm of Schatz & Nobel accuses Sharper Image of making false and misleading statements regarding the company’s business condition, which allegedly resulted in stock being traded for inflated prices.
The accusations claim company insiders sold more than $18 million worth of their own shares while failing to disclose that company businesses were cannibalizing retail and infomercial sales. It is also alleged that Sharper Image failed to disclose a drastic slowdown of sales of a key air purifier product and higher related infomercial costs.
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