Class Action Commenced by Kaufman Malchman Kirby & Squire, LLP
Thursday November 19, 5:06 pm Eastern Time
Company Press Release
Class Action Commenced by Kaufman Malchman
Kirby & Squire, LLP
NEW YORK--(BUSINESS WIRE)--Nov. 19, 1998--A class action lawsuit has been filed in the United States
District Court for the Central District of California on behalf of all purchasers of K-Tel International, Inc
(''K-Tel'') (NASDAQ:KTEL - news) securities between October 27, 1998 and November 17, 1998 (the
''Class Period'').
The Complaint asserts claims under the federal securities laws, including claims for violation of Section 10(b)
and 20 (a) of the Securities Exchange Act of 1934 and Rule 10b-5 of the Securities Exchange Commission, by
reason of the material misrepresentations and omissions by K-Tel and certain of its officers during the Class
Period.
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 K-Tel had been informed by the NASDAQ National Stock 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
November 17, 1998, the price per share of K-Tel common stock plunged from $17 to $10 in just two days.
Plaintiff seeks to recover losses suffered by investors who purchased K-Tel securities during the Class Period,
excluding the defendants and their affiliates, and is represented by among other firms, Kaufman Malchman
Kirby & Squire, LLP. Kaufman Malchman has specialize in complex litigation, including securities and consumer
class actions for decades. Kaufman Malchman has repeatedly demonstrated their expertise in this field, and
have been repeatedly recognized by various courts which have appointed the firm to major positions in
consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation
have resulted in recoveries totaling hundreds of millions of dollars. The firm's achievements and quality of
service have been chronicled in published decisions, and the firm's efforts have been responsible for
significant recoveries, or injunctive relief, for its clients and class members.
If you are a member of the Class described above, you may, not later than sixty days from the date of this
notice, 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, please contact:
Jeffrey H. Squire, Esq. Ira M. Press, Esq. Danielle Feman, Paralegal KAUFMAN MALCHMAN KIRBY &
SQUIRE, LLP 919 Third Avenue, 11th Floor New York, New York 10022 (212) 371-6600 or Toll Free (888)
529-4787 dfeman@kmkslaw.com (E-mail address)
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