Reinhardt & Anderson Announces Notice of Pendency of Class Action Suit Against K-TEL and Certain of Its Officers and Directors Alleging Securities Fraud
Thursday November 19, 6:13 pm Eastern Time
Company Press Release
ST. PAUL, Minn.--(BUSINESS WIRE)--Nov. 19, 1998--ALL INSTITUTIONS AND INDIVIDUALS ARE
HEREBY NOTIFIED that a class action has been commenced in the United States District Court for the
District of Minnesota on behalf of purchasers of K-TEL, International Inc. (''K-TEL'') (Nasdaq: KTEL -
news) common stock during the period November 3, 1998 to November 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. The complaint alleges that during the Class Period, the defendants artificially inflated
K-TEL stock to over $35 per share by making a series of false and misleading statements about K-TEL's
compliance with NASDAQ's listing requirements for National Market listing.
The Complaint alleges that the Defendants sought to avoid the specter of delisting and its adverse affect on
the liquidity of defendants' considerable holdings of K-Tel common stock by orchestrating a campaign to
artificially inflate the price of the shares through a series of false and misleading statements while the
defendants sought to obtain additional financing before the truth of its inability to comply with NASDAQ's
listing requirements was revealed. As alleged in the complaint, the defendants' scheme worked causing the price
of K-TEL shares to jump to over $35 per share from $6.875 in a matter of days! One week after the public
relations blitz ended, the defendants scheme unraveled as the truth was finally revealed when K-TEL announced
revealed for the first time that it had received a letter from NASDAQ advising defendants that K-TEL no
longer met the net tangible asset requirements for continued listing on NASDAQ as alleged in the complaint.
By the end of the trading on November 17, 1998, K-TEL shares plummeted to just $12 per share, 1/3 of its
perceived value just days before.
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 several law firms, including Reinhardt & Anderson, who have
expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
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 sixty 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 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 .
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