Wechsler Harwood Files Class Action Against K-Tel International,
Thursday November 19, 2:23 pm Eastern Time
Company Press Release
NEW YORK--(BUSINESS WIRE)--Nov. 19, 1998--Notice is hereby given that a class action lawsuit was filed
in the United States District Court, District of Minnesota on behalf of all purchasers of K-Tel International,
Inc. (NASDAQ: KTEL - news) common stock during the period November 3, 1998 through November 17, 1998
(the ''Class Period'') by the law firm of Wechsler Harwood Halebian & Feffer LLP.
The Complaint alleges that K-Tel and certain officers and directors of the Company during the Class Period
violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint charges that the
defendants issued a series of material false and misleading statements and failed to disclose the warning 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 during the Class
Period. The Complaint alleges that on November 17, 1998, K-Tel disclosed that it had received a warning from
the NASD regarding delisting. Once the NASD warning letter became public, the price of K-Tel stock dropped
from a class period high of $39.125 to $10.00 per share.
The plaintiff seeks to recover damages on behalf of all purchasers of K-Tel common stock during the Class
Period. Plaintiff is represented by the law firm Wechsler Harwood Halebian & Feffer LLP, who have expertise
in prosecuting investor class actions and extensive experience in actions involving financial fraud. The
reputation and expertise of this firm in shareholder and other class action litigation has been repeatedly
recognized by the courts, which have appointed the firm to major positions in complex multi-district and
consolidated litigations.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion
with the Court within sixty (60) days. Class members must meet certain legal requirements to serve as a lead
plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a
lead plaintiff in this action, you may contact John Halebian or Scott A. Kamber at Wechsler Harwood by
e-mail at ktel@whhf.com, by facsimile at (212) 935- 7400, or by telephone at (212)935-7400.
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