It is with horror that the editors at ColoradoBiz viewed the dramatic dive in share price for Niwot-based Crocs last week.
Crocs (CROX: NASDAQ) stock was about $75 when November started. It plummeted as low as 34 bucks, but bounced a little and ended at about $38. (Check out our Crocs video commentary at ColoradoBiz TV). At one point, Crocs’ 82 million outstanding shares had lost more than $3.2 billion in value, including co-founder George Boedecker’s $136 million lost on his 3.4 million shares.
The next blow? A class action lawsuit filed on behalf of injured shareholders. The suit by Coughlin Stoia Geller Rudman & Robbins of San Diego alleged the usual kind of thing you see with these instant lawsuits, that Crocs “issued materially false and misleading statements” and didn’t tell investors it was having trouble distributing its dorky-looking shoes in Japan and Europe.
Whew, that was quick. Why have these instant shareholder lawsuits become the norm? I asked Denver forensic accountant and financial fraud expert witness Gordon Yale why.
Read the full story at .
