Securities Class Action Filed Against KTEL
Friday November 20, 4:55 pm Eastern Time
Company Press Release
Class Action Filed Against K-Tel International, Inc. and Certain of its Officers
and Directors for Violations of the Federal Securities Laws
SEATTLE--(BUSINESS WIRE)--Nov. 20, 1998--A class action has been commenced in the United States
District Court for the Central District of California on behalf of all purchasers of the common stock of K-Tel
International, Inc. (''KTEL'')(Nasdaq:KTEL - news) during the period from October 27, 1998 through
November 17, 1998 (the ''Class Period'').
The complaint charges that KTEL and certain of its officers and directors with violations of the federal
securities laws. Specifically, plaintiffs have brought claims sections 10(b) and 20 of the Securities Exchange
Act of 1934.
The complaint alleges that KTEL and certain of its officers and directors participated in a fraudulent scheme
by, among other things, concealing from investors an October 1998 letter from the NASDAQ National Market
System informing KTEL that the company had failed to maintain the ''minimum tangible net asset requirement
for listing'' on that exchange. The complaint alleges that these misrepresentations and omissions caused KTEL
shares to trade at an artificially inflated price during the Class Period.
The Plaintiff seeks to recover damages on behalf of all purchasers of KTEL securities during the Class Period
(the ''Class''). The plaintiff is represented by Hagens Berman, P.S. Hagens Berman has concentrated its
practice in the field of class action and multi-plaintiff litigation, representing plaintiffs in numerous securities
and investment fraud actions throughout the country. Hagens Berman has been appointed lead or co-lead counsel
on behalf of defrauded investors, including individual and institutional shareholders in numerous complex
financial cases, and has been responsible for many large recoveries which, in the aggregate, total more than $1
Billion. For more information about the firm, visit our website at www.Hagens-Berman.com.
If you are a member of the Class described above, you may, no later than 60 days from November 19, 1998,
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 plaintiffs' counsel Karl P. Barth at Hagens
Berman, P.S. at 206/623-7292 or toll free at 888/381-2889 or via e-mail at karl@hagens-berman.com.
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