FYI : PWAV class action law suit
Company Press Release
Class Action Suit Filed Against Powerwave Technologies Inc. and Its Officers and Directors Alleging Misrepresentations and Insider Trading
SAN DIEGO--(BUSINESS WIRE)--July 16, 1998--A class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Powerwave Technologies Inc. (''Powerwave'') (NASDAQ:PWAV - news) common stock during the period June 4, 1997 to January 16, 1998.
The complaint charges Powerwave and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants' false representations that continuing strong demand for and sales of Powerwave's cellular telephone amplifier products in South Korea, especially to its three largest customers, Hyundai Electronics Industries Corp., LG Information & Communications Ltd. and Samsung Electronics Co., and the successful geographic diversification of Powerwave's business to lessen its dependence on sales into South Korea, would generate 30%-40% earnings per share growth for Powerwave in 1998 and 1999, thus
artificially inflating Powerwave's stock to a Class Period high of $49 in early October 1997. To take advantage of the inflation of Powerwave's stock, Powerwave sold one million new shares to the public, obtaining $21 million in needed capital, while Powerwave's insiders sold 5,050,485 shares of their own Powerwave stock for
$148.9 million in proceeds. Some $83 million of the stock sales by Powerwave's insiders came in October 1997, as Powerwave's stock traded near its all-time high of $49 and just before it began to drop to much lower levels. Then, on January 15, 1998, Powerwave admitted that, due to order cancellations and stretch-outs from its largest South Korean customers, problems with the South Korean currency and economy and an inability to make up the South Korean sales shortfall elsewhere, its
1998-1999 results were going to be much worse than earlier forecast, with declining revenues and EPS in 1998, not the large increases forecast throughout the Class Period. On January 15, 1998, Powerwave's stock dropped to $10 from $16-1/2 on 5.4 million share volume, almost 40% in one day.
Plaintiff seeks to recover damages on behalf of all purchasers of Powerwave common stock during the Class Period (the ''Class''). The plaintiff is represented by two law firms, Milberg Weiss Bershad Hynes & Lerach LLP and Reinhardt & Anderson, who have expertise in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation
for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations.
Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's website at milberg.com.
Reinhardt & Anderson devotes its practice to securities, antitrust and consumer class actions and has recovered hundreds of millions of dollars on behalf of defrauded investors and consumers in class actions throughout the United States.
If you are a member of the Class described above, you may, no later than 60 days from today, 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, please contact plaintiff's counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com, or Randall H. Steinmeyer of Reinhardt & Anderson, by telephone at 888/253-5139 or 612/227-9990, by facsimile at 612/297-6543, or by e-mail at ralaw@minn.net |
