Audiovox 2003 Annual Report Download - page 29

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During 2001, the Company, along with other suppliers, manufacturers and
distributors of hand−held wireless telephones, was named as a defendant in five
class action lawsuits alleging damages relating to exposure to radio frequency
radiation from hand−held wireless telephones. These class actions have been
consolidated and transferred to a Multi−District Litigation Panel before the
United States District Court of the District of Maryland. On March 5, 2003,
Judge Catherine C. Blake of the United States District Court for the District of
Maryland granted the defendants' consolidated motion to dismiss these
complaints. Plaintiffs have appealed to the United States Circuit Court of
Appeals, Fourth Circuit. The appeal pending before the United States Circuit
Court of Appeals, Fourth Circuit in the consolidated class action lawsuits
(Pinney, Farina, Gilliam, Gimpelson and Naquin) against ACC and other suppliers,
manufacturers and distributors as well as wireless carriers of hand−held
wireless telephones alleging damages relating to risk of exposure to radio
frequency radiation from the wireless telephones has not yet been heard. It is
anticipated that the appeal will be heard in May 2004.
The Company had been the subject of an administrative agency investigation
involving alleged reimbursement of a fixed nominal amount of federal campaign
contributions during the years 1995 and 1996. During the third quarter of fiscal
2003, the Company entered into a Conciliation Agreement and paid a civil penalty
in the amount of $620.
During the third quarter of fiscal 2003, a certain Venezuelan employee, who
is also a minority shareholder in Audiovox Venezuela, submitted a claim to the
Venezuela Labor Court for severance compensation of approximately $560. The
Court approved the claim and it was paid and expensed by Audiovox Venezuela in
the third quarter of fiscal 2003. The Company is challenging the payment of this
claim and will seek reimbursement from the Venezuelan shareholder or the
Company's insurance carrier.
The Company does not expect the outcome of any pending litigation,
separately and in the aggregate, to have a material adverse effect on its
business, consolidated financial position or results of operations.
Item 4 − Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the fourth
quarter of fiscal 2003.
PART II
Item 5 − Market for the Registrant's Common Equity and Related Stockholder
Matters
Summary of Stock Prices and Dividend Data
The Class A Common Stock of Audiovox are traded on the Nasdaq Stock Market
under the symbol VOXX. No dividends have been paid on the Company's common
stock. The Company is restricted by agreements with its financial institutions
from the payment of common stock dividends while certain loans are outstanding
(see Liquidity and Capital Resources of Management's Discussion and Analysis).
There are approximately 617 holders of record of our Class A Common Stock and
27