Did Sonos Management Engage In Securities Fraud & Other Unlawful Practises, Legal Firm Moves On The Company
Just weeks after Sonos dumped their CEO along with several senior management and commenced a major restructure of the struggling business, a leading US law firm has announced that have launched an investigation on behalf of shareholders into whether management “Engaged in securities fraud or other unlawful business practices.”
Pomerantz Law is currently investigating the company’s handling of its 2024 app disaster and whether certain Sonos officers benefitted from the disaster which led to a slump in sales and the appointment of a new CEO.
The legal group claim that on May 7, 2024, Sonos launched a redesigned app that was plagued with significant issues, with users unable to perform essential functions like accessing or searching their music libraries, setting sleep timers, or even downloading the app.
On October 1, 2024, following ‘an internal review of its app release in May’, Sonos issued a press release acknowledging ‘missteps’ and reporting that ‘no member of the Executive Leadership Team will accept any annual bonus payout for the October 2024 – September 2025 fiscal year unless the company succeeds in improving the quality of the app experience and rebuilding customer trust.
Pomerantz Law is no slouch when it comes to legal actions against big Companies.
The business won a historic A$4.7 billion settlement with Brazil’s state-run oil company Petrobras which was the fifth-largest class action settlement ever achieved in the United States, and the largest settlement ever in a class action involving a foreign issuer.
Pomerantz clients claim that management at Sonos were not forthcoming of both the true nature and damaging depth of the problems that Sonos was facing sand that they failed to properly brief the market as is legally required.
Some investors claim that there was a lack of transparency that ended up causing investors to lose more money than they should had if there had been a truer picture of the situation.
Currently Sonos is discounting stock around the world to generate cash.
The legal firm have a strong record of recovering large settlements on behalf of investors.
Some observers claim that it defies logic that a company that did so many things right went completely screwed up an app development program with some blaming poor management a “woke culture” in the Company and the fact that developers and management were working from home.
Also under investigation is the correlation and timing between various Sonos app-related announcements and the resulting drop in the value of SONO stock.
Pomerantz is inviting investors who are holding shares of SONO to reach out to them for more information and to share their stories.
Former Sonos CEO Patrick Spence
As Sonos customers realised that there was a major problem with the Sonos system back in August 2024, several customers were calling for a class action against the Compan
Year to day Sonos shares are down $12.6% and 13.6% during the last 30 days, Sonos has not responded to the action.
If you are an investor in Sonos, get more information at [email protected], or call them at +1 (646) 581-9980. ext/ 7980.
