Radioshack’s Employee 401(K) Plan – Investigation For ERISA Violations
Zamansky LLC announces that it has commenced an investigation of Radioshack Corporation (“Radioshack” or the “Company”)(NYSE: RSH) and its employee 401(k) retirement plan for violations of the federal Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties on the trustees of 401(k) plans to prudently manage and invest plan assets. These duties were violated by the continued inclusion of Radioshack stock as an investment option even after it had become imprudent.
Since 2010, Radioshack’s stock price has fallen nearly 80%, from over $20 per share to under $3 per share. The Company’s income has plummeted and its costs and costs have been rising, and it recently announced management changes. On July 24, 2012, a securities fraud class action lawsuit was filed by shareholders alleging that Radioshack misled investors about the devastating impact its change in corporate strategy was having on its performance, particularly on profit margins. Radioshack was moving more toward resales of wireless products from customers such as Verizon and Sprint. The impact further resulted in Radioshack becoming an imprudent investment for the Company’s 401(k) plan.
If you are an existing or former Radioshack employee who owns the Company’s stock through the 401(k) plan, please contact our firm for an evaluation of your rights. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at firstname.lastname@example.org.