Stull, Stull & Brody Announces Class Action Lawsuit Against Westell Technologies, Inc.
NEW YORK--(BUSINESS WIRE)--Dec. 12, 2000--
Insider Sellers Named as Defendants in Fraud Lawsuit Filed On Behalf
of Purchasers of Westell Industries, Inc.
The following is an announcement from the law firm of Stull, Stull
Brody:
The law firm of Stull, Stull & Brody announced today that in its class action securities fraud lawsuit filed against Westell Technologies, Inc. (Nasdaq:WSTL) ("Westell" or the "Company"), that it also named Marc Zionts, Westell's Chief Executive Officer ("CEO"), William J. Nelson, Westell's President and Chief Operating Officer
("COO"), Nicholas Hindman, Westell's Chief Financial Officer and Secretary-Treasurer, Bruce Albelda, Westell's director of Investor Relations, and Howard L. Kirby, Jr. and Thomas A. Reynolds, two members of the Company's Board of Directors, as defendants.
The complaint charges that Zionts, Nelson, Hindman, Albelda, Kirby and Reynolds misrepresented the level demand for Westell's products from SBC Communications, when they knew since June of 2000 that SBC would be purchasing significantly fewer modems from the Company. While this information was known to Zionts, Nelson, Kirby and Reynolds, and while Westell's stock price was peaking at about $30 per share, these individuals sold $11 million of their personal holdings in Westell common stock. The complaint alleges the following insiders trades:
DATE WHO SHARES TRANSACTION
-------- --------------- ------- --------------------
8/1/2000 KIRBY, HOWARD L. 10,000 Sold at $22.79/Share.
Proceeds of $227,900.
7/31/2000 KIRBY, HOWARD L. 20,000 Sold at $23.80/Share.
Proceeds of $476,000.
7/28/2000 KIRBY, HOWARD L. 10,000 Sold at $23.53/Share.
Proceeds of $235,300.
7/27/2000 KIRBY, HOWARD L. 10,000 Sold at $26.76/Share.
Proceeds of $267,600.
7/26/2000 KIRBY, HOWARD L. 10,000 Sold at $29.09/Share
Proceeds of $290,900.
7/25/2000 KIRBY, HOWARD L. 10,000 Sold at $27.69/Share
Proceeds of $276,900.
7/25/2000 ZIONTS, MARC 25,000 Exercised Options at $6.77/Share
and Sold at $28.05/Share.
Proceeds of $532,000.
7/25/2000 ZIONTS, MARC 30,000 Sold at $28.05/Share.
Proceeds of $841,500.
7/25/2000 HINDMAN, NICHOLAS 2,000 Exercised Options at $6.77/Share
and Sold at $30.00/Share.
Proceeds of $46,460.
7/24/2000 HINDMAN, NICHOLAS 2,000 Exercised Options at $6.77/Share
and Sold at $27.38/Share.
Proceeds of $41,220.
7/24/2000 KIRBY, HOWARD L 10,000 Sold at $28.31/Share.
Proceeds of $283,100.
7/24/2000 REYNOLDS, THOMAS A. 12,200 Sold at $28.46/Share.
Proceeds of $347,212
7/24/2000 REYNOLDS, THOMAS A. 15,000 Sold at $28.46/Share.
Proceeds of $427,900.
7/24/2000 ZIONTS, MARC 147,500 Exercised Options at $6.22/Share
and Sold at $28.95/Share.
Proceeds of $3,352,675.
7/24/2000 ZIONTS, MARC 28,940 Sold at $28.25-$28.95/Share.
Proceeds of $831,555.
7/21/2000 NELSON, J. WILLIAM 100,000 Sold at $27.38/Share.
Proceeds of $2,738,000.
If you purchased Westell Technologies, Inc. (Nasdaq:WSTL) ("Westell" or the "Company") securities between June 27, 2000 and October 18, 2000 (the "Class Period"), you may no later than December 26, 2000, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.
CONTACT:
Stull, Stull & Brody
Tzivia Brody, Esq., 800/337-4983
Fax: 212/490-2022
SSBNY@aol.com
TICKERS: Nasdaq:WSTL
KEYWORD: NEW YORK
BW2734 DEC 12,2000
19:58 PACIFIC
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