As Strata-gee recently reported, there are currently seven active lawsuits that have been filed against Control4 and their Board of Directors in the wake of their acquisition by SnapAV. In a new DEFA14A filing with the Securities and Exchange Commission last Friday, the company addresses the issue of these lawsuits – saying that they are going to fight them. But then they do something very curious – they file an amendment to their original Schedule 14A filing, their Proxy Statement, with added information that appears to add missing material in response to allegations in the lawsuits filed against them.
Financial
Control4 Hit With Another Class Action Lawsuit by Shareholders

The Control4 Corporation has been hit with another class action lawsuit filed on behalf of all shareholders of their stock in connection with their acquisition by Wirepath Home Systems, LLC – better known as SnapAV. Filed by the law firm of Rigrodsky & Long, P.A., the lawsuit alleges certain violations of Securities Exchange Act of 1934 and names both Control4 and its Board of Directors as defendants.
See more on this litigation against Control4…
[Read more…] about Control4 Hit With Another Class Action Lawsuit by ShareholdersSnapAV Slammed with Credit Downgrade by Moody’s

Credit rating agency Moody’s Investors Service has downgraded the credit rating of Wirepath LLC (corporate name of SnapAV) from B2 to B3 in the wake of their announced acquisition of Control4. The primary reason for the downgrade is due to the fact that SnapAV will be forced to increase their debt by an additional $390 million to a new high of $683 million in order to close on this acquisition.
See more on SnapAV’s credit downgrade…
[Read more…] about SnapAV Slammed with Credit Downgrade by Moody’sTrio of New Economic Reports Suggest Growth is Slowing

Although the US is in the midst of a record period of economic expansion, more and more troubling signs have appeared over the last few months in the form of negative economic data points to suggest that a turn in the economy may be coming. This week, a trio of new reports – consumer confidence, sales of newly constructed homes, and corporate earnings revisions – suggest that economic growth is stalling and that “turn” may be here.
See the latest economic data suggesting a slowdown…
[Read more…] about Trio of New Economic Reports Suggest Growth is SlowingThe Real Story of Why Control4 Wanted to be Acquired

In the wake of the recent announcement about the acquisition of Control4 by SnapAV, all executives associated with this deal have not been available to the media…their lips are sealed. But Control4 is a public company – at least until this deal closes and they go private – and a recent filing gives a dramatic, detailed view of how hard the parties worked to make this deal happen, and why Control4 really, really wanted to be acquired.
See new details on how the SnapAV/Control4 deal came to be…
[Read more…] about The Real Story of Why Control4 Wanted to be AcquiredAngling at Auction for a Deal on Thiel? Heed This Warning
Last week’s Strata-gee story on the final liquidation of what remains of Thiel not only drew a huge number of readers, it also sent a big chunk of them on to the auctioneer’s website (McLemore Auctions). Many of those readers who journeyed to the auction were in search of a great deal on a good line of Thiel speakers. But then, in an unexpected twist, a source reached out to Strata-gee to offer a warning to those in search of a great deal on Thiel.
Know this before bidding in the Thiel auction…
[Read more…] about Angling at Auction for a Deal on Thiel? Heed This WarningSwan Song for Thiel: Total Liquidation Has Begun

The long sad saga of Thiel is just about over for good. Having entered bankruptcy in October 2018, an auction house has finally been selected and started the process of liquidating all that remains of the former Nashville, Tenn-based Thiel…including Thiel Loudspeakers, Aurora by Thiel wireless music systems, and detritus from the Aurora Studio live streaming music studio.
Hot deal – cold brand: The Thiel liquidation…
[Read more…] about Swan Song for Thiel: Total Liquidation Has BegunAudioControl CEO on Fox Biz Network Says Tariffs are Trouble
Alex Camara, CEO of Seattle-based specialty electronics manufacturer AudioControl, was featured Friday on a segment on the Fox Business Network (FBN) talking the real impact of tariffs on American manufacturers. In the wake of the move by the Trump administration pushing a dramatically increased 25% tariff on a wide range of Chinese goods, Camara explained to FBN anchor Liz Claman the true impact these tariffs have on his business…and ultimately the American consumer.
See Camara explain how tariffs are trouble…
[Read more…] about AudioControl CEO on Fox Biz Network Says Tariffs are TroubleSound United to Acquire Onkyo’s Audio Division

We seem to be in a week of big deals. First, we learned that SnapAV had acquired Control4, then we learned that the original founder of Paradigm has acquired back the Paradigm, Anthem, and Martin Logan brands from the private equity company that had bought the company from him some time back. Now we learn that Sound United, owner of Denon, Marantz, Polk Audio, Definitive Technology, HEOS, Classé, and Boston Acoustics has entered into an agreement with Onkyo Corp. to purchase Onkyo’s premier lineup of brands, including: Onkyo, Integra, Pioneer and Pioneer Elite.
But does Sound United’s purchase of Onkyo make sense?…
[Read more…] about Sound United to Acquire Onkyo’s Audio DivisionEmerald Expo Releases Q1 Results with Head-Scratching Statements
Does Good Spin Offset Bad Numbers?

Emerald Expositions Events, Inc. (NYSE:EEX), a leading provider of trade shows and events and the current owner of CEDIA Expo, announced their financial results today for the first fiscal quarter of 2019. And while this tends to be a rather mundane or even robotic process, there were a few things unique about this report from Emerald – most notably their head-scratching comments that dramatically contrasted with the numbers.







