Milberg Weiss Files Class Action Suit Against
K-Tel International Inc. and Its Officers and
Directors Alleging Misrepresentations
Thursday November 19, 5:05 pm Eastern Time
Company Press Release
SAN DIEGO--(BUSINESS WIRE)--Nov. 19, 1998--Milberg Weiss today announced that a class action has
been commenced in the United States District Court for the Central District of California on behalf of
purchasers of K-Tel International Inc. (''K-Tel'') (Nasdaq:KTEL - news) common stock during the period Oct.
27, 1998 to Nov. 17, 1998 (the ''Class Period'').
The complaint charges K-Tel and certain of its officers and directors with violations of the Securities
Exchange Act of 1934. K-Tel markets and distributes entertainment and consumer products. The complaint
alleges that throughout the first two weeks of November 1998, the price of K-Tel's common stock surged, from
$6-7/8 per share to nearly $40 per share, as the Company made several announcements concerning its efforts
to market music over the Internet. While the Company had been informed by the Nasdaq National Market
System (''Nasdaq'') in an October 1998 letter that the Company failed to maintain the ''minimum tangible
net asset requirement for listing'' on that exchange, this crucial news was concealed from investors. When news
of the Nasdaq letter (and the Company's longstanding knowledge thereof) was made public on Nov. 17, 1998,
market reaction was swift. The price per share of K-Tel common stock dropped from $17-5/8 per share to less
then $10 in just two trading days.
Plaintiff seeks to recover damages on behalf of all purchasers of K-Tel common stock during the Class Period
(the ''Class''). The plaintiff is represented by two law firms, including Milberg Weiss Bershad Hynes &
Lerach LLP, 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 30 years. The firm has offices in New York, San Diego, San Francisco, Los Angeles and
Boca Raton 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 Web site at milberg.com.
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.
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