Koss losses force it to another exchange
- Thread starter fredcohiba
- Start date
fredcohiba
Super Member
More news - maybe not as dire. I did not figure that on a unit basis Koss, outsells such names as Bose, Sennheiser and Monster in the U.S.
http://www.jsonline.com/business/tr...an-optimistic-note-b99386531z1-282817441.html
http://www.jsonline.com/business/tr...an-optimistic-note-b99386531z1-282817441.html
Good thing for the knothead running the company he was born on third base, he'd never have reached first on his own.
This often happens with family controlled businesses; the founder is a sharp, enterprising guy with vision but his descendants lack his brains and drive, treat the company as a cash cow and eventually run it into the ground. Schwinn is another example.
The Economist had an interesting article on family firms a week or two back. In recent years, many of them have actually been outperforming publicly held companies.
see saw
That is partially due to the see saw effect. They'd go in 1 direction, a few years of mediocre junk later ... maybe when they know wha may be a better project next, they get a change in direction due to change in leadership ... they go another direction ... and back and forth it goes.
The low hanging fruit is all gone. You cant get blockbuster gains in output wattage and reliability just from switching to solid state from the old tubes anymore.
Just a rough example. I love tubes, but thought it was a good example to use.
Cool.
Srinath.
That is partially due to the see saw effect. They'd go in 1 direction, a few years of mediocre junk later ... maybe when they know wha may be a better project next, they get a change in direction due to change in leadership ... they go another direction ... and back and forth it goes.
The low hanging fruit is all gone. You cant get blockbuster gains in output wattage and reliability just from switching to solid state from the old tubes anymore.
Just a rough example. I love tubes, but thought it was a good example to use.
Cool.
Srinath.
fredcohiba
Super Member
Unfortunately, more struggles for Koss.
http://www.bizjournals.com/milwauke...5/04/koss-corp-suit-against-park-bank-to.html
http://www.bizjournals.com/milwauke...5/04/koss-corp-suit-against-park-bank-to.html
That's not a struggle, that's a win. The bank moved to dismiss the suit, the judge said there were valid issues for trial. This is all an outgrowth of the original fraud case.
fredcohiba
Super Member
Actually, the bank is counter suing Koss for losses. Bank says Koss's CEO should have known of losses and if the bank is forced to pay (Koss sued them for not catching the fraud earlier), they want Michael Koss to also pay his share of those losses.
This.
Michael Koss is the poster child for idiot CEOs. He deserves ALL the public humiliation heaped on him for not doing his job. Not only has he failed to react to market conditions, he doesn't understand financial reports.
As brian222 posted, how DO you miss $34,000,000.00. That's almost a full YEAR's worth of sales...
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“This is a classic case of a company trying to point the finger at everyone but itself,” Park Bank attorney Dean Laing said
Yep....
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Be that as it may, the judge dismissed the bank's attempt to throw out the suit.
Brian
An Old Geezer
Koss needs to look at the pointed finger. One may point to another but 3 point back to the pointer. I foresee some settlement without admitting liability by the bank's insurance carrier. The guys who should be sweating is Grant and it's audit team. Though the firm says it is not an objective to discover fraud, the audit standards and courts have not been as narrow in scope. The new internal control audit requirements need to be designed to determine the exposure and risks and from that the audit plan and scope is adjusted. A decade ago, firms had a better defense but, those days are long over.
Obviously none of us know who was authorized to withdraw from those accounts, and what protocols were in place for making those withdrawals. If the bank allowed activity without proper authorization, then they very well may have some liability...and if Koss' attorneys thought that there was a substantial danger in the counter-suit, they would surely have informed the company of that by now.
Agreed that the external auditors are the ones who should be terrified right now. Whether or not their objective is to "discover fraud," missing irregularities of that scope for that length of time would seem to require both an incompetent auditor and a very clever fraudster.
Agreed that the external auditors are the ones who should be terrified right now. Whether or not their objective is to "discover fraud," missing irregularities of that scope for that length of time would seem to require both an incompetent auditor and a very clever fraudster.
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