Weiss & Yourman Files Securities Fraud Action Against K-Tel Communications Inc. and Certain of Its Officers
Thursday November 19, 8:00 pm Eastern Time
Company Press Release
LOS ANGELES--(BUSINESS WIRE)--Nov. 19, 1998--The following is an announcement by Weiss & Yourman.
A class action lawsuit was filed Thursday in the United States District Court for the Central District of
California on behalf of purchasers of K-Tel International Inc. (Nasdaq:KTEL - news) common stock between
Oct. 30, 1998 and Nov. 17, 1998.
K-Tel is an international marketer and distributor of entertainment and consumer products.
According to the complaint, defendants were informed in the end of October 1998 that K-Tel did not meet the
minimum requirements necessary for continued listing on the Nasdaq, but did not disclose the information to the
investing community for two or three weeks until filing its 10-Q quarterly with the Securities and Exchange
Commission on Nov. 17.
As a result, the stock plunged about 32% to $12 per share, declining $5.63 per share in a single day. The
complaint alleges that defendants violated federal securities laws by not timely disclosing material information,
thereby maintaining the stock price at artificially inflated levels.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Weiss &
Yourman, which has significant experience and expertise in prosecuting class actions on behalf of investors and
shareholders.
If you are a member of the class described above, you may, no later than 60 days from the date of this notice,
move the Court to serve as lead plaintiff, 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 with
respect to this matter, contact plaintiff's counsel, David Katz of Weiss & Yourman (NY) at (888) 593-4771,
or via e-mail at wynyc@aol.com or Elizabeth Lin of Weiss & Yourman (LA) at (800) 437-7918, or via e-mail at
wyca@aol.com.
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