POLY.US
id: 1295
Plantronics ($POLY) $29.5M Investor Settlement
Eligible claimants can submit their claims for compensation.
$29,500,000
Cash SettlementN.D. California
Court4:19-cv-07481
Case number08/07/2018
Class period Start11/05/2019
Class period End06/25/2025
Claim deadlinePlantronics has agreed to settle $29.5 million with $POLY investors to resolve claims that it inflated its revenue results by engaging in channel stuffing.
Outline
In 2019, Plantronics allegedly oversold products to distributors, artificially inflating revenue. In November 2019, the company announced a $65 million reduction in channel inventory, revealing prior channel stuffing practices. Following this, $POLY dropped 36.6%, and Plantronics faced a lawsuit from investors.
Timeline
- August 7, 2018 – Plantronics announced its merger with Polycom.
- March 31, 2019 – March 31, 2020 – The company increased revenue by accelerating shipments to distributors ahead of demand, leading to excess inventory in its sales channels.
- November 5, 2019 – Plantronics announced a $65 million reduction in channel inventory, leading to a 36.6% drop in $POLY.
- May 2020 – Investors filed a lawsuit, alleging financial misrepresentation due to channel stuffing.
- July 18, 2024 – Plantronics agreed to a $29.5 million settlement with investors.
Background
In 2018, Plantronics completed its merger with Polycom and began promoting strong revenue growth, highlighting increased demand across its audio and video communications products.
Throughout 2019, the company consistently reaffirmed its financial outlook and attributed strong performance to healthy customer demand.
However, Plantronics allegedly used aggressive sales tactics to inflate revenue, including “channel stuffing”—shipping excess inventory to distributors to meet short-term sales targets.
Later reports showed that executives knew that customer demand did not match reported revenue and that distributors were accumulating unsold products.
However, the company failed to disclose growing inventory risks and material weaknesses in its internal controls.
On November 5, 2019, Plantronics announced a $65 million inventory reduction, exposing past channel stuffing. Following the disclosure, $POLY fell 36.6%.
By May 2020, investors filed a lawsuit claiming that Plantronics misrepresented its true financial condition.
What Can Investors Expect Now?
Plantronics has agreed to settle $29.5 million with investors to resolve claims that it misrepresented its financials by engaging in channel stuffing to inflate revenues.
If you were damaged due to this situation, you can file a claim to receive your portion of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.5
Filing date
11/13/2019
Plaintiffs
Ilya Trubnikov
Attorneys
Glancy Prongay & Murray LLP (Los Angeles, CA), Law Offices of Howard G. Smith (Bensalem, PA)
Defendants
Joseph Burton, Charles Boynton, and Pamela Strayer
Judge
Jon S. Tigar
Administrator
JND Legal Administration
Settlement agreement date
2024-07-18
Court hearing date
08/14/2025
Exclusion deadline
06/25/2025
Objection deadline
06/25/2025
Attorney fee
$7,239,998
Trades matching type
FIFO
Frequently Asked Questions
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