Zamansky LLC Investigates RadioShack Over Its Employee 401(k) Plan

Zamansky LLC announces that it has commenced an investigation of RadioShack Corporation (“RadioShack” or the “Company”)

and its employee 401(k) retirement plan for violations of the federal Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties on the trustees of 401(k) plans to prudently manage and invest plan assets. These duties were violated by the continued inclusion of RadioShack stock as an investment option even after it had become imprudent. Since 2010, RadioShack's stock price has fallen 90%, from over $20 per share to under $1 per share. The Company's income has plummeted and its costs and costs have been rising, and it recently announced management changes. On June 20, 2014, the Wall Street Journal reported that some analysts believe that RadioShack's stock in worthless, and discussed the possibility of bankruptcy. The article also reported on RadioShack's news that it was closing 220 stores due to their lack of profitability. According to employee stock and investment fraud attorney, Jake Zamansky, RadioShack has faced serious troubles for several years. RadioShack's fall into bankruptcy would severely hurt employees who purchased stock through the 401(K) plan, Zamansky states. Many will lose large portions of their retirement savings, he says.