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Case ID: 4035 | Stocks | 12/07/2004
A class action has been filed in the Northern District Court of California against Utstarcom Inc. (NASDAQ: UTSI), a California based communications services company, and certain of its officers and directors by stockholders who purchased the company's common stock between April 16, 2003 and September 20, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
Specifically, the complaint alleges that during the class period, the defendants caused UTStarcom's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of the inflation, UTStarcom was able to raise proceeds of $475 million through a secondary offering and Company insiders allegedly reaped $56 million in illegal insider trading proceeds. More specifically, the complaint alleges that the Company concealed the following facts from the public: • The Company had massive supply chain constraints delaying legitimate revenue recognition On September 16 2004, the Company reported that income projections would not be as high as expected and that there were significant problems with the Company's internal controls. This news caused the Company's stock to drop 5.86%. Days later, they announced that they were revising their financial guidance downward. The revision was based on a deal with Japan Telecom that could not yet be recognized. This news caused their stock to drop an additional 9.86%.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest According to a press release dated April 14, 2008, the Complaint alleges that Wells Fargo violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic “auctions.” Auction rate securities generally have long-term maturities or no maturity dates.
Several class actions have been filed against financial services company American Express Company (NYSE: AXP), American Express Financial Corporation, and American Express Financial Advisors, Inc. and certain of its officers and directors by investors who purchased who purchased mutual funds in the American Express family of mutual funds between March 10, 1999, to February 9, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. According to a press release dated April 11, 2008, the Complaint charges Agria Corporation and certain of its officers and directors with violations of the Securities Act of 1933. Agria engages in the research and development, production, and sale of upstream agricultural products in the People's Republic of China. A class action has been filed against Sierra Wireless, Inc.(NasdaqNM:SWIR), certain of its officers and directors by stockholders who purchased the company's common stock between January 28, 2004 and January 26, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The class has been certified in an action filed against Kmart Corporation board members and executives on behalf of current and former Kmart employees who had more than $100 million of the discount chain's stock in their 401(k) retirement plans when the company went bankrupt. The action alleges that the defendants violated the federal Employee Retirement Income Security Act by abrogating their fiduciary duties to plan participants. Persons eligible to take part in the action should contact attorneys for the class. It may be time for greater government oversight of mutual fund companies. Several class actions have been filed against the Lord Abbett family of mutual funds (various stock symbols) and certain of the officers and directors both Lord Abbett & Company, LLC by investors who purchased Lord Abbett mutual funds between February 6, 1999, to November 17, 2003. The actions claim that the defendants violated federal securities laws by drawing upon the assets of the Lord Abbett Funds to pay brokers to aggressively push Lord Abbett Funds over other funds, and then concealing the payments from investors by disguising them as brokerage commissions. |
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