Kid Brands Inc faces Shareholder Investigation over possible Securities Laws Violations

March 16, 2011 - PRLog -- A steep almost 30% stock price drop triggered an investigation on behalf of investors in shares of Kid Brands Inc  over possible violations of Federal Securities Laws.

If you are an investor in shares of Kid Brands Inc , and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm on behalf of investors in NYSE Kid shares focuses on potential shareholder claims in connection with certain recent statements.

While Kid Brands’ 12months Total Revenue went from $147.10million to $243.94million in 2009 its Net Income went from a Net Loss of $9.44million in 2006 to a Net Income of $8.91million in 2007 to a substantial Net Loss of $111.56million in 2008 to a Net Income of $11.71million in 2009.

For the first three quarters in 2010 Kid Brands Inc reported a combined nine months Total Revenue of $200.52million with a combined nine months Net Income of $11.91million.

Shares of Kid Brands Inc traded during 2009 as low as $3.64 and increased to over $10 in April 2010. Recently NYSE-KID shares traded as high as $9.44 per share on March 10.

Then on March 15, 2011 Kid Brands, Inc.  announced a leadership change at its LaJobi subsidiary and said Rick Schaub has been appointed as President of LaJobi, effective immediately, in addition to his ongoing role as President of Kid Brands’ Sassy subsidiary.
Kid Brands said it took these actions based on the findings to date of an investigation into LaJobi, initiated at the direction of the Board of Directors, and supervised by a Special Committee of three non-management members of the Board.

Kid Brands, Inc said its investigation was initiated after its Board was made aware of potential issues regarding customs duty paid on products imported into the U.S., while LaJobi was in the process of discussing customs duty issues with U.S. Customs and Border Protection.
Kid Brands disclosed that its Board’s investigation has found instances at LaJobi in which incorrect import duties were applied on certain wooden furniture imported from vendors in China, resulting in a violation of anti-dumping regulations. On the basis of the investigation, so Kid Brands, the Board concluded that there was misconduct involved on the part of certain LaJobi employees in connection with the incorrect payment of duties, including misidentifying the manufacturer and shipper of products. Kid Brands said its ongoing investigation is also focusing on certain of LaJobi’s business and staffing practices in Asia.

Following the announcement shares of Kid Brands, Inc.  dove from $9.24 per share on March 14, 2011 to as low as $6.60 per share during Tuesday’s trading.

Those who are investors in shares of Kid Brands Inc (Public, NYSE-KID), and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

# # #

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.