Roger Shannon Oversaw Lakeland Financials Before Termination: Levi & Korsinsky, LLP
MWN-AI** Summary
Levi & Korsinsky, LLP has informed investors that Roger D. Shannon, the former Chief Financial Officer of Lakeland Industries, Inc. (NASDAQ: LAKE), is named as a defendant in a securities class action. The lawsuit is on behalf of shareholders who acquired securities between December 1, 2023, and December 9, 2025. Following the disclosure of Shannon's termination on December 10, 2025, Lakeland’s shares plummeted by 38.97%, closing at $9.16.
The complaint outlines Shannon’s responsibilities as CFO, emphasizing his role in overseeing the company’s financial guidance, reporting, and SEC filings during the relevant period. It claims that he made misleading statements regarding the firm’s financial performance. Notably, on December 5, 2024, Shannon reaffirmed projected EBITDA figures that the lawsuit alleges were already at risk. He further characterized elevated working capital as a sign of customer demand, despite operational problems affecting the company.
Furthermore, the lawsuit alleges that Shannon failed to recognize the implications of delayed orders and signed Sarbanes-Oxley certifications which purportedly misrepresented the accuracy of the firm’s financial disclosures. These certifications covered critical quarterly and annual filings that are now under scrutiny for misleading information.
Shannon is charged under Section 20(a) of the Securities Exchange Act of 1934 as a controlling person of Lakeland, raising important questions about his awareness of the company’s deteriorating operational conditions. His termination coinciding with a significant earnings miss and the withdrawal of guidance adds another layer to the allegations of accountability. The lead plaintiff deadline for the lawsuit is set for April 24, 2026. Interested parties are encouraged to contact Levi & Korsinsky for additional guidance regarding potential recovery options.
MWN-AI** Analysis
Investors holding shares of Lakeland Industries, Inc. (NASDAQ: LAKE) should closely monitor developments surrounding the termination of Roger D. Shannon, the former Chief Financial Officer. Following his dismissal, Lakeland's stock plummeted nearly 39%, closing at $9.16. This steep decline underscores the urgency for shareholders to evaluate their position and potential losses, which could be exacerbated by revelations from the ongoing securities class action initiated by Levi & Korsinsky, LLP.
Shannon's prominent role in overseeing financial reporting and guidance during a tumultuous period raises significant concerns. Allegations include misleading projections regarding EBITDA and inventory levels despite clearly observable operational issues at key subsidiaries—Pacific Helmets and Jolly. Investors must critically assess whether these misleading statements were a mere oversight or indicative of wider, systemic problems within Lakeland's management.
Moreover, Shannon's signing of Sarbanes-Oxley certifications adds a layer of personal accountability. Should the litigation proceed in favor of the plaintiffs, those who purchased stock during the specified class period (December 1, 2023, to December 9, 2025) could find avenues for recovery.
As the lead plaintiff deadline of April 24, 2026 approaches, investors should consider participating in the class action if they are eligible. This represents a potential opportunity to recoup losses resulting from the stock’s dramatic downturn linked to governance failings.
Looking forward, investors are advised to keep a close watch on forensic findings from the litigation, which could have implications for the company's reputation and stock recovery prospects. Additionally, maintaining diversified holdings in your portfolio can help mitigate risks associated with individual stock volatility and corporate governance issues. Staying informed and proactive will be crucial in navigating these troubled waters.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Executive Accountability: Roger D. Shannon Named in Securities Action After Employment Terminated
Levi & Korsinsky, LLP notifies investors that Roger D. Shannon, former Chief Financial Officer of Lakeland Industries, Inc. (NASDAQ: LAKE), is named as a defendant in a securities class action filed on behalf of shareholders who purchased securities between December 1, 2023 and December 9, 2025. Find out if you are eligible to recover losses from the Lakeland securities action . You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Lakeland shares fell $5.85, or 38.97%, to close at $9.16 on December 10, 2025, the same day the company disclosed Shannon's employment had been terminated. The lead plaintiff deadline is April 24, 2026.
Shannon's Role During the Class Period
The complaint identifies Shannon as Lakeland's CFO at all relevant times through December 9, 2025, when his employment was terminated. In that capacity, Shannon was responsible for the Company's financial reporting, guidance, and SEC filings. His termination was disclosed in an 8-K filed the same evening Lakeland reported Q3 FY2026 results that missed revenue consensus estimates by $9.05 million and withdrew all forward guidance.
What Shannon Allegedly Oversaw
As CFO, Shannon allegedly oversaw the financial projections that the lawsuit contends were unreliable. Key allegations concerning Shannon include:
- On December 5, 2024, Shannon stated that "[g]iven the totality of our positive results, trends and expectations, we continue to expect . . . Adjusted EBITDA excluding FX of at least $18 million," reaffirming guidance the complaint alleges was already in jeopardy
- Shannon characterized $12.5 million in elevated working capital as evidence of "strong demand from our customers" and inventory built "in preparation for the forecasted increase in sales," which the action claims painted a misleading picture of Lakeland's financial trajectory
- On April 9, 2025, Shannon acknowledged the EBITDA shortfall "was a direct result of the slippage of a large boot order at Jolly into FY26," an order delay the complaint asserts was foreseeable given sustained operational problems
- Shannon signed Sarbanes-Oxley certifications on multiple SEC filings attesting that the reports did not contain untrue statements of material fact
Shannon's SOX Certifications and Liability
The action names Shannon under Section 20(a) of the Securities Exchange Act of 1934 as a controlling person of Lakeland. As pleaded, Shannon signed SOX certifications on the Q1 2025, Q2 2025, and Q3 2025 10-Q filings, as well as the 2024 10-K, each certifying the accuracy and completeness of the Company's financial disclosures. The complaint charges that these certifications were materially misleading because Lakeland was experiencing significant, sustained issues with its Pacific Helmets and Jolly businesses that rendered financial guidance unreliable.
"Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When a CFO certifies financial statements and reaffirms guidance while the company's acquired businesses face sustained operational problems, serious questions arise about what was known and when." -- Joseph E. Levi, Esq.
Section 20(a) Context for Shannon
The complaint asserts that Shannon possessed the power and authority to control the contents of Lakeland's SEC filings and press releases. As averred, Shannon had access to material non-public information about deteriorating conditions at Pacific Helmets and Jolly, yet continued to reaffirm financial guidance and sign certifications attesting to the accuracy of those disclosures. His termination on the same day Lakeland withdrew guidance and reported its largest earnings miss raises additional questions about accountability.
LEAD PLAINTIFF DEADLINE: April 24, 2026
Speak with an attorney about Shannon's role and your recovery options or contact Joseph E. Levi, Esq. at (212) 363-7500.
Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260310923388/en/
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
FAQ**
How did Roger D. Shannon's role as CFO of Lakeland Industries Inc. (LAKE) contribute to the alleged inaccuracies in the financial projections and disclosures that led to the class action?
What specific operational issues at Pacific Helmets and Jolly did Shannon fail to disclose, and how might this impact the liability of Lakeland Industries Inc. (LAKE) in the pending securities action?
Can you clarify the implications of Section 20(a) of the Securities Exchange Act of 19for Roger D. Shannon in relation to his SOX certifications for Lakeland Industries Inc. (LAKE)?
What potential recovery options are available for shareholders of Lakeland Industries Inc. (LAKE) who purchased securities during the class period identified in the lawsuit?
**MWN-AI FAQ is based on asking OpenAI questions about Lakeland Industries Inc. (NASDAQ: LAKE).
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