Exhibit 99.2
STATE OF WISCONSIN |
| CIRCUIT COURT |
| MILWAUKEE COUNTY |
IN RE KOSS CORPORATION |
| Lead Case No.: 10-CV-002422 |
SHAREHOLDER DERIVATIVE |
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LITIGATION |
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JOINT REPORT CONCERNING SETTLEMENT
Plaintiffs James Mentkowski and Myriam Ruiz (“Plaintiffs”), Nominal Defendant Koss Corporation (“Koss”), and Defendants Michael J. Koss, John C. Koss, John J. Stollenwerk, Thomas L. Doerr, Theodore H. Nixon, and Lawrence S. Mattson (the “Director Defendants”), respectfully submit this Joint Report to advise the Court of the status of efforts to settle the claims alleged against the Director Defendants in this action.
Plaintiffs and representatives of Koss and the Director Defendants have been engaged in settlement negotiations for several months. Those negotiations culminated in an April 26, 2011 mediation before Howard B. Wiener (Justice of the California Court of Appeal, Retired) in San Diego, California. Plaintiffs and the Director Defendants are pleased to report that as a result of their arms- length negotiations, and with the assistance of Justice Wiener, they have reached an agreement in principle for the settlement of the claims asserted in this action against the Director Defendants.
Among other things, the agreement in principle contemplates, subject to this Court’s approval: (i) the dismissal with prejudice of the claims asserted by Plaintiffs (derivatively, on behalf of Koss Corporation) against the Director Defendants, and (ii) a dismissal without prejudice as to claims asserted in this action against Defendants Grant Thornton LLP and Sujata Sachdeva, in deference to a pending action against Grant Thornton LLP and Sujata Sachdeva brought by Koss Corporation in Chicago, Illinois.
Plaintiffs and the Director Defendants are preparing formal settlement documentation and will submit such documentation to the Court shortly.
DATED: | 5/19/11 |
| HALE & WAGNER, S.C. |
| K. SCOTT WAGNER (SBN 1004668) | ||
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| /s/ K. SCOTT WAGNER | ||
| K. SCOTT WAGNER | ||
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| 839 North Jefferson Street, Suite 400 | ||
| Milwaukee, WI 53202 | ||
| Telephone: 414/278-7000 | ||
| 414/278-7590 (Fax) | ||
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| Liaison Counsel | ||
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| ROBBINS GELLER RUDMAN | ||
| & DOWD LLP | ||
| DARREN J. ROBBINS | ||
| TRAVIS E. DOWNS III | ||
| BENNY C. GOODMAN III | ||
| LAURIE L. LARGENT | ||
| 655 West Broadway, Suite 1900 | ||
| San Diego, CA 92101-3301 | ||
| Telephone: 619/231-1058 | ||
| 619/231-7423 (Fax) | ||
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| ROBBINS GELLER RUDMAN | ||
| & DOWD LLP | ||
| S. ASHAR AHMED | ||
| POST MONTGOMERY CENTER | ||
| One Montgomery Street, Suite 1800 | ||
| San Francisco, CA 94104 | ||
| Telephone: 415/288-4545 | ||
| 415/288-4534 (FAX) | ||
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| ROBBINS UMEDA LLP | ||
| BRIAN J. ROBBINS | ||
| 600 B Street, Suite 1900 | ||
| San Diego, CA 92101 | ||
| Telephone: 619/525-3990 | ||
| 619/525-3991 (Fax) | ||
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| Co-Lead Counsel for Plaintiffs | ||
DATED: | 5-19-11 |
| CRAMER, MULTHAUF & HAMMES, LLP |
| PETER J. PLAUSHINES (SBN 1004302) | ||
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| /s/ PETER J. PLAUSHINES | ||
| PETER J. PLAUSHINES | ||
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| 1601 East Racine Avenue, Suite 200 | ||
| Waukesha, WI 53187 | ||
| Telephone: 262/542-4278 | ||
| 262/542-4270 (Fax) | ||
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| Attorneys for Defendants Koss Corporation, Michael J. Koss and John C. Koss | ||
DATED: | 5-19-11 |
| K&L GATES LLP | |
| JOHN W. ROTUNNO | |||
| PAUL J. WALSEN | |||
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| /s/ JOHN W. ROTUNNO | |||
| JOHN W. ROTUNNO | |||
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| 70 W. Madison Street, Suite 3000 | |||
| Chicago, IL 60602-4207 | |||
| Telephone: 312/372-1121 | |||
| 312/827-8000 (Fax) | |||
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| Attorneys for Defendants Koss Corporation, Michael J. Koss and John C. Koss | |||
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DATED: | 5-19-11 |
| EAGAN AVENATTI LLP | |
| MICHAEL J. AVENATTI | |||
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| /s/ MICHAEL J. AVENATTI/ALC | |||
| MICHAEL J. AVENATTI | |||
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| 450 Newport Center Drive, Second Floor | |||
| Newport Beach, CA 92660 | |||
| Telephone: 949/ 706-7000 | |||
| 949/706-7050 (Fax) | |||
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| Attorneys for Defendants Koss Corporation, Michael J. Koss and John C. Koss | |||
