New RadioShack Strategy Sparks Investor Class Action

Law360, New York (August 3, 2012, 4:25 PM EDT) -- RadioShack Corp. was hit with a putative class action in New York federal court alleging it lied to shareholders about the prospects for a new smartphone-focused business model that sacrificed more profitable consumer electronics sales.

The company and CEO James Gooch made a series of false statements between July 2011 and July 2012 lauding the new strategy, which focused on reselling Verizon Wireless phones at kiosks in Target stores, according to the July 30 suit by shareholder David Fidel. That strategy provided weaker profit margins than...
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