Another one.....
K-TEL International, Inc. Overstated its Revenues According to a Lawsuit Filed By Berman DeValerio & Pease LLP
Boston, Nov. 20 /PRNewswire/ -- Berman, DeValerio & Pease LLP Boston's largest securities class action firm announced today that a class action was filed in the United States District Court for the District of Minnesota on behalf of all persons and entities who purchased the common stock of K-Tel International, Inc. (Nasdaq: KTEL) during the period October 13, 1998 through and including November 17, 1998 (the "Class Period") and who suffered losses on their investments.
The action charges that K-Tel and certain officers and directors of the Company violated provisions of the Federal Securities Laws. The Complaint charges that the defendants issued a series of material false and misleading statements and failed to disclose that K-Tel had fallen below the minimum tangible net asset requirement for being listed on the NASDAQ Exchange. This crucial news was concealed from investors. The Company had been warned that it was to be delisted from the NASDAQ National Market, even as K-Tel's stock was being run-up based upon a public relations campaign orchestrated by the Company to herald its "partnerships" with Playboy and Microsoft and create interest in a secondary offering or private placement. Because of the issuance of these false and misleading statements, the price of K-Tel's common stock was artificially inflated trading as high as $39.125 during the Class Period. The Complaint alleges that on November 17, 1998, K-Tel disclosed that in October it had received a warning letter from the NASD regarding delisting. When news of the NASDAQ letter and the Company's longstanding knowledge about it was made public on November 17, 1998, the price of K-Tel stock dropped from $17 5/8 to less than $10.00 per share in just two trading days.
If you purchased K-Tel common stock during the period October 13, 1998 through November 17, 1998 and suffered a loss on your investment, you may wish to contact the lawyers at Berman DeValerio to discuss your rights and interests:
Norman Berman, Esq.
Jeffrey C. Block, Esq.
Donald F. Campbell, Jr., Senior Paralegal
Berman, DeValerio & Pease LLP
One Liberty Square, Boston, MA 02109
E-Mail: bdplaw@bermanesq.com.
800-516-9926 |
