Lawyer Representing Plaintiff in AARO Broadband Wireless Communications Case Comments On Fraud Judgments
OKLAHOMA CITY, June 29, 2001--Three lawsuits recently filed over allegations of securities fraud by AARO Broadband Wireless Communications, Inc., (OTCBB Symbol AARW) have resulted in judgments exceeding $530,000 against the company according to Rogers, Arkansas based attorney John Dodge who represents AARO shareholders Jim Steele, Mel Robinson and Paul Bryan.
Dodge said the judgments stem from three separate cases heard in two different Arkansas Courts earlier this month. Court records show the company refused to answer allegations of violation of state and federal securities fraud statutes.
The court judgments cite AARO for concealing materially adverse information in its SEC reports filed during the past year, preparing and filing false or misleading financial statements and violating federal anti-fraud provisions of federal securities regulations in connection with its operations in the last 13-months.
As word of the judgments began to circulate among shareholders, Dodge said his office became inundated with phone calls from AARO shareholders. AARO was based in Springdale, Arkansas until last May when it moved to Oklahoma City and tried to become a wireless internet service provider.
"We have been unsuccessful in our attempts to communicate with AARO management. Their phones remain unanswered for over a week now, except by an answering machine. Our inability to engage them in any dialog about their intentions regarding satisfying the judgments forces us to now execute on the judgments," Dodge said.
"The judgment holders have reached an accord with other large AARO shareholders and have developed a plan to assure continuity of company operations. A planned involuntary bankruptcy on AARO has been delayed to see if a restructuring plan can be developed. We are prepared to file it, however, if we see company assets being converted, wasted or jeopardized by anyone," said Dodge.
Dodge said "An institutional investor has agreed to a conditional plan that calls for it to infuse up to $750,000 into AARO over a six-month period. That commitment is conditioned upon a change of control while AARO restructures. The capital infusion will be used to conduct a special mid-year audit to determine the company's true financial condition and stabilize operations."
"As a contingency, my clients have recruited an executive staff and board to be led by a local university business professor. They are prepared to try to return the corporation to a 'going concern' status as quickly as possible, in the event of a change of control," Dodge said. |
