Franklin Wireless settles securities class action for $2.4M over Jetpack defects

FRANKLIN WIRELESS CORP

Settlement resolves securities fraud claims over alleged defective Jetpack batteries supplied to Verizon; no admission of wrongdoing.
Defendants will pay $2.4M into escrow for class members; court must approve settlement.
Class period covers purchases of Franklin common stock (FKWL) between Sep 17, 2020 and Apr 8, 2021.
The company cited uncertainty and expense of further litigation as reasons for settling.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

FRANKLIN WIRELESS CORP entered into Stipulation and Agreement of Settlement valued at $2.4 million (effective 2023-05-23).

Action: entry
Agreement: settlement
Value: $2.4 million
Effective: 2023-05-23

Exact text from the filing

The Memorandum of Understanding was formalized in a Stipulation and Agreement of Settlement (the “Settlement Agreement”) that was executed on May 23, 2023 and filed with the Court on May 24, 2023.

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FRANKLIN WIRELESS CORP filing history →

Source: SEC EDGAR

accession 0001683168-23-003774

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