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Case ID: 4947 | Stocks | 11/16/2006
Kahn Gauthier Swick, LLC ("KGS") has filed the first class action lawsuit in the United States District Court for the Northern District of California, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of Pegasus Wireless Corp. ("Pegasus" or the "Company'') (OTC BB: PGWC.OB) between December 22, 2005 and September 5, 2006 (the "Class Period").
Pegasus and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Beginning with an August 24, 2006 report published by The MotleyFool.com, investors were shocked and alarmed to learn a series of disturbing reports on Pegasus and its management, including: (1) Pegasus failed to disclose CEO Jasper Knabb's and CFO Stephen Durland's close business ties with convicted felons, securities fraudsters and the like; (2) Pegasus failed to disclose a series of related party transactions and the manner in which Knabb purchased more than $26 million in Pegasus stock; (3) Pegasus withheld pertinent information involving Knabb's history with penny stock companies with suspicious trading patterns. The revelation of this news caused Pegasus shares to decline almost 25% on volume of almost 2 million shares from the closing price of $7.60 per share two days earlier. At the close of the Class Period, over Labor Day weekend, a report by Barron's revealed that: (1) Knabb had previously been arrested for possible insurance fraud; (2) Two former Knabb companies – BIFS Technologies, formerly Biofiltration Systems, and Wireless Frontier – evidenced suspected stock and market manipulation; (3) Pegasus failed to disclose the truth concerning the novelty and uniqueness of its products and the foreseeability to compete in the current marketplace. Following the Barron's report, on September 5, 2006, the first day of trading after the Labor Day weekend, shares of Pegasus plummeted to a trading low of $1.10 per share, falling over 36.5% on huge volume of almost 18 million shares. If you wish to serve as lead plaintiff in this case, you must move the Court no later than 60 days from today. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or 504-648-1850, or by email at lewis.kahn@kglg.com. SPECIAL NOTICE: While federal law does not prohibit other lawyers from "announcing" this lawsuit, Kahn Gauthier Swick is the law firm that researched, investigated, drafted and filed the securities fraud case against Pegasus. If you are a Pegasus shareholder who decides to contact one of these lawyers, Kahn Gauthier Swick reminds you to fully interview any lawyer to assure that they fully understand the facts surrounding the Pegasus claims our firm has filed in Court. 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 Several class actions have been filed against specialty finance company NovaStar Financial, Inc. (NYSE:NFI) and certain of its officers and directors by stockholders who purchased the company's common stock between October 29, 2003, and April 8, 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. Bonds are normally a very safe investment vehicle. Several class actions have been filed against numerous parties connected to eleven municipal bond offerings in California, Florida, Illinois, and Texas on behalf of persons who purchased the bonds between December 1996 and March 1999. The $130,000,000+ in bonds related to Heritage Healthcare, were to be used to acquire, renovate, and reopen former hospitals in the states as facilities designed to assist elderly persons-- instead, the funds were allegedly diverted and misused so that all of the facilities went into bankruptcy shortly after the bond offerings. A class action has been filed against electrical utility holding company FirstEnergy Corporation (NYSE: FE) and certain of its officers and directors by stockholders who purchased the company's common stock between April 24, 2002, and August 5, 2003. Kahn Gauthier Swick, LLC ("KGS") announces that it has filed suit against Sourcefire, Inc. ("Sourcefire" or the “Company”) (NasdaqGM:FIRE - News), in the United States District Court for the District of Maryland, on behalf of shareholders who purchased shares of the Company in connection with its Initial Public Offering ("IPO") on or about March 9, 2007, or thereafter in the open market. KGS has expanded the lawsuit’s defendants beyond the Company, Board of Directors and CFO, to include the underwriters involved in the Offering (including, Morgan Stanley, Lehman Bros., UBS Securities and Jeffries & Co.), who are each charged with including or allowing the inclusion of materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO, in direct violation of the Securities Act of 1933. Several class actions have been filed against networking company Nortel Networks Corporation (NYSE:NT) and certain of its officers and directors by stockholders who purchased the company's common stock between December 23, 2003, and March 12, 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. A class action has been filed against certain of the former officers and directors of now-defunct Stockwalk, Inc. (formerly Nasdaq: STOK), and its former independent auditor, Ernst & Young, by stockholders who purchased Stockwalk common stock between May 8 and September 25, 2001. |
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