Zamansky LLC announces that it is investigating Natus Medical Incorporated (NASDAQ: BABY) (Natus or the Company) for potential breaches of fiduciary duties concerning its accounting practices, specifically with regard to its allegedly obsolete inventory. If you are a Natus shareholder and still hold your BABY shares, please contact our firm for further information.
As recently reported, Natus accounting practices have been called into question by a third-party short seller. It has been suggested that Natus warranty/bad debt reserves and prepaid expenses accounts have all been depleted/manipulated over the last year to artificially increase EPS by $0.33 (or nearly 25% of earnings). Furthermore, the third-party short seller has alleged that Natus accounting practices, including its non-GAAP exclusions, raise similar concerns to another company that previously came under fire for its accounting practices: Logitech International SA (NASDAQ: LOGI) (in 2011, Logitech was forced to restate its earnings, reduce guidance, and pay a fine in connection with a 70% drop in its share price).
According to Jake Zamansky, an investment fraud attorney, Natus officers and directors owe the Company and its shareholders fiduciary duties. Our initial review of Natus suggests that shareholders may have cause for concern as it relates to the Companys accounting and its treatment of inventory Zamansky says. We will continue to monitor this situation as it unfolds, and our law firm is investigating whether certain of Natus officers and directors may have breached their duties to the Company.
What Natus Shareholders Can Do
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If you are a current shareholder of Natus, please contact us to review or discuss your legal rights. You may, without obligation or cost to you, email [email protected] or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm with experience handling securities, hedge fund, ERISA and other shareholder class action and derivative litigation. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
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