Headphone Maker Silences Investors' Embezzlement Suit

Law360, New York (March 7, 2012, 5:18 PM EST) -- Headphone manufacturer Koss Corp. reached a class action settlement Tuesday with shareholders who claim the company and its CEO should have picked up on a former employee's $34 million embezzlement.

The $1 million settlement willl help recoup investors' losses and then some: the million-dollar mark is more than twice the maximum provable damages and is meant to offer shareholders generous compensation for any trouble they incurred as a result of the scandal, according to Tuesday's motion.

The case, filed by investor David Puskala on behalf of...
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