Franklin Wireless Corp.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of those who acquired Franklin Wireless Corp. (“Franklin Wireless” or the “Company”) (NASDAQ: FKWL) securities during the period from September 17, 2020 through April 8, 2021 (the “Class Period”). Investors have until June 15, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Franklin purports to be a leading provider of intelligent wireless solutions such as mobile hotspots, routers, trackers, and other devices. On April 1, 2021, Franklin stated that it "ha[d] been notified of reports of battery issues in some of its wireless hotspot device." It also stated that the Company was "working with its battery and device manufacturing partners and carrier customer to determine the cause and extent of the problem." On this news, the Company's share price fell $0.35, or 1.65%, to close at $20.77 per share on April 5, 2021, the next trading session, on unusually heavy trading volume. On April 8, 2021, media reported that Verizon Wireless is recalling certain hotspot devices. According to CNBC, Verizon is "recalling 2.5 million hotspot devices after discovering that the lithium ion battery can overheat, creating a fire and burning hazard." Moreover, the "recall impacts Ellipsis Jetpack mobile hotspots imported by Franklin Wireless Corp and sold between April 2017 and March 2021." On this news, the Company's share price fell $2.82, or 14%, to close at $17.33 per share on April 8, 2021, on unusually heavy trading volume. On April 9, 2021, Franklin stated that its customer Verizon Wireless "has issued a voluntary recall of its Jetpack Hotspot devices imported by Franklin." The Company stated that "[a]t this time, fewer than 20 report of trouble have been received with over 2 million devices in [sic] sold over the last three and a half years." On this news, the Company's share price fell $4.07, or nearly 23%, to close at $13.26 per share on April 9, 2021, on unusually heavy trading volume.
If you acquired Franklin Wireless securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.