A $29.5 million settlement for investors of electronics maker Plantronics Inc. has officially cleared its final hurdle. On Monday, U.S. District Judge Jon S. Tigar granted final approval, describing the deal as “fair, reasonable, and adequate” for shareholders who claimed the company’s leadership propped up revenues through a secretive “channel-stuffing” scheme—a tactic that later triggered a dramatic stock price collapse.
The Alleged Scheme and Market Fallout
The class period spans from Aug. 7, 2018, when Plantronics first reported revenues tied to the undisclosed practice, through Nov. 9, 2019, when the company acknowledged the fallout. Once the truth surfaced, Plantronics stock plummeted nearly 37%, sinking from more than $39 per share to about $25.
Investors alleged that Plantronics inflated its short-term numbers by shoving excess inventory onto distribution partners—effectively “borrowing sales” from future quarters. Internally, the strategy was often dubbed “channel stuffing” or “hockey stick” sales.
