Robbins Umeda LLP Announces an Investigation of Koss Corporation

SAN DIEGO--(BUSINESS WIRE)--

Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors of Koss Corporation ("Koss" or the "Company") KOSS and its executive officers in connection with the possible diversion of the Company's funds by Koss's employees for their own personal use and the possible concealment of these fraudulent acts through the manipulation of Koss’s financial statements. Koss designs, manufactures, and sells stereo headphones and related accessory products. The Company was founded in 1953 and is based in Milwaukee, Wisconsin.

Robbins Umeda LLP's investigation concerns whether Koss's Board of Directors and executive officers acted in accordance with their fiduciary duties by creating an adequate system of internal controls to detect and prevent this type of fraudulent scheme. The investigation also concerns whether Koss's fiduciaries acted consistent with their duties by exercising proper monitoring over this system, if one existed, and over the Company in general.

The Company's internal review thus far indicates that this mismanagement and misappropriation has been occurring since at least 2005 and over $30 million of Koss's funds have been improperly given to Koss employees. In addition, the Company will likely have to restate its financial statements for this time period to correct for the possible manipulation of Koss's books and records.

If you purchased Koss stock before July 12, 2005, continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Lauren Levi at 800-350-6003 or by e-mail at llevi@robbinsumeda.com.

Robbins Umeda LLP is a California-based law firm with significant experience representing investors in shareholder derivative actions, securities class actions, and merger-related shareholder class actions. For more information about the Firm, please go to http://www.robbinsumeda.com.

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