REUTERS STORY ABOUT AMPD FRAUD SUIT
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Amplidyne hit by shareholder suit
NEW YORK, Sept 16 (Reuters) - Amplidyne Inc., whose shares skyrocketed last week after it announced a new, inexpensive high speed wireless Internet product, Thursday was slapped with a federal lawsuit accusing the company of making false statements about its system for high-speed wireless Internet access.
The suit, which seeks class action status, was filed in U.S. District Court for the District of New Jersey, on behalf shareholders who purchased Amplidyne stock between Sept. 9 and Sept. 14.
The complaint accuses Amplidyne and its Chief Executive Officer Devendar Bains of artificially inflating its stock by issuing false and misleading statements.
Shares of Raritan, N.J.- based Amplidyne had been trading between 1-3/16 and 3-5/16 since June until the company issued a statement about a new product Sept. 9, when it skyrocketed from 3-1/8 to 10-22/32. The following day it reached a high of 16-3/4 and has since fallen back to 6-5/16 Thursday afternoon, down 11/16.
Bains referred inquiries to his attorney, who said he had no comment because he knew of no lawsuit.
REUTERS
Rtr 17:40 09-16-99
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