Orange 21 has reportedly received a cease-and-desist letter from Oakley with respect to patent and trademark issues involving three of its product styles. In a press release, Orange 21 stated that upon review of the claims, the company believes them to be without merit. The three product styles accounted, in the aggregate, for less than four percent of Orange 21's sales for the 2004 fiscal year.
In related Orange 21 news, Smith & Smith LLP is investigating a potential securities class action on behalf of shareholders who acquired ORNG shares in connection with the recent IPO. The reason behind the investigation is “disappointing earnings guidance for 2005, causing Orange 21 shares to plummet.” While shares did fall from $9.50 per share, to $6.60 per share, the companys guidance called for 25% to 30% sales growth, and earnings per share growth of approximately 70% to 90% (See BOSS_0408).
>>> It pays to be conservative