|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 5186 | Stocks | 09/23/2008
According to a law firm press release, the complaint charges NextWave and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NextWave is a mobile broadband and multimedia technology company that develops, produces and markets mobile multimedia and wireless broadband products.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, NextWave stock traded at artificially inflated prices during the Class Period, reaching as high as $10.10 per share in June 2007. On August 7, 2008, after the market closed, Nextwave issued its second quarter 2008 financial results, announcing it only had $71.1 million in cash and similar instruments available as of June 30, 2008 and, unless it raised money, its cash would run out at the beginning of October 2008. As a result, the Company was seeking financing that would give the Company enough money to operate through June 2009. On this news, NextWave's stock fell $1.90 per share to close at $0.95 per share, a one-day decline of 67%. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) NextWave did not have adequate sources of liquidity to continue operations as it executed its growth strategy and continued making aggressive worldwide acquisitions; (b) defendants had no reasonable basis to make favorable statements that the Company's WiMAX semiconductor products would be available for commercial sale in the first half of 2008; (c) NextWave's growth and acquisition strategy was not financially successful and did not provide the basis for continued growth or financial success because it was straining NextWave's fragile liquidity position and NextWave did not have the financial resources to continue to operate its world-wide operations through the end of 2008; (d) NextWave failed to timely disclose that it had invested all of its marketable securities in extremely high-risk and illiquid auction rate securities; and (e) NextWave's ability to continue as a going concern was seriously in question by reason of the facts alleged in subparagraphs (a)-(d) above.
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 news article published June 10, 2008, Universal Food & Beverage Co. is facing a class-action complaint alleging its directors sold $20 million of their preferred stock while artificially propping up the share price.
A class action has been filed against Xybernaut Corporation (NasdaqSC:XYBRE), certain of its officers and directors by stockholders who purchased the company's common stock between March 27, 2003 and April 08, 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. On March 25, 2008, a motion to appoint lead plaintiff and counsel was filed by Robotti & Company. As a result, a response to the above mentioned motion to appoint lead plaintiff and counsel was filed on April 11, 2008 by several individuals. As this case proceeds, the court has not made its order to appoint lead plaintiffs and counsels yet.
A class action has been filed against clearing broker Bear Stearns & Company, Inc.
by stockholders who purchased ML Direct, Inc. securities from Sterling Foster & Company during the approximately three-and-a-half months that followed ML Direct's December 2001 IPO. The action claims that the Bear Stearns violated federal securities laws by facilitating Sterling Foster's alleged fraudulent short selling scheme involving the IPO securities.
On May 09, 2008, a motion to appoint lead plaintiff and lead counsel was filed by a certain individual and a proposed order has been entered at the same time. Just as quickly, an Order granting motion to appoint lead plaintiff and for the approval of lead counsel was entered on June 09, 2008.
On April 28, 2008, a motion to appoint Plumbers’ Union Pension Fund as lead plaintiff was filed.
|
|
© 2000 - 2009 Copyright. All rights reserved nola3, llc.
