Daktronics Unexpected Going Concern Case

The case has been dismissed, typically without any further action.

On December 6, 2022, Daktronics stated with the SEC that it would be unable to timely file its Quarterly Report for the period ended October 29, 2022, and that there is “substantial doubt” about the Company’s ability to continue as a going concern.

Daktronics also reported that it recorded a valuation allowance of approximately $13.0 million for deferred tax assets, which “created a covenant violation under our line of the credit agreement.”
The Company “also expects to conclude that its disclosure controls and procedures and internal control over financial reporting were not effective as a result of material weaknesses.”

On this news, Daktronics’ share dropped 39% and the Company lost over $59 million of its capitalization, thereby injuring investors.

Investors have reasons to suspect that the Company, its Leaders, and its Services providers could have committed gross negligence in the management of the Company and disclosure of information to shareholders.

Case Status

Dismissed

Alleged Offence

Mismanagement,

Financial Misrepresentation,

Failure to Disclose,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Shock Event Date

12/06/2022