K-TEL International, Inc. Overstated its Revenues According to
a Lawsuit Filed By Berman DeValerio & Pease LLP
Friday November 20, 6:00 pm Eastern Time
Company Press Release
Boston, Nov. 20 /PRNewswire/ -- Berman, DeValerio & Pease LLP Boston's largest securities class action firm
announced today that a class action was filed in the United States District Court for the District of Minnesota
on behalf of all persons and entities who purchased the common stock of K-Tel International, Inc. (Nasdaq:
KTEL - news) during the period October 13, 1998 through and including November 17, 1998 (the ''Class
Period'') and who suffered losses on their investments.
The action charges that K-Tel and certain officers and directors of the Company violated provisions of the
Federal Securities Laws. The Complaint charges that the defendants issued a series of material false and
misleading statements and failed to disclose that K-Tel had fallen below the minimum tangible net asset
requirement for being listed on the NASDAQ Exchange. This crucial news was concealed from investors. The
Company had been warned that it was to be delisted from the NASDAQ National Market, even as K-Tel's
stock was being run-up based upon a public relations campaign orchestrated by the Company to herald its
''partnerships'' with Playboy and Microsoft and create interest in a secondary offering or private placement.
Because of the issuance of these false and misleading statements, the price of K-Tel's common stock was
artificially inflated trading as high as $39.125 during the Class Period. The Complaint alleges that on
November 17, 1998, K-Tel disclosed that in October it had received a warning letter from the NASD
regarding delisting. When news of the NASDAQ letter and the Company's longstanding knowledge about it was
made public on November 17, 1998, the price of K-Tel stock dropped from $17 5/8 to less than $10.00 per
share in just two trading days.
If you purchased K-Tel common stock during the period October 13, 1998 through November 17, 1998 and
suffered a loss on your investment, you may wish to contact the lawyers at Berman DeValerio to discuss your
rights and interests:
Norman Berman, Esq.
Jeffrey C. Block, Esq.
Donald F. Campbell, Jr., Senior Paralegal
Berman, DeValerio & Pease LLP
One Liberty Square, Boston, MA 02109
E-Mail: bdplaw@bermanesq.com.
800-516-9926
You can also visit us at our website at www.bermanesq.com. In addition, under the federal securities laws you
may, but not later than sixty days from November 11, 1998, move the court to serve as lead plaintiff of the
Class, if you so choose. To serve as lead plaintiff, however, you must meet certain legal requirements. You may
contact the attorneys at Berman DeValerio & Pease LLP to discuss your rights regarding the appointment of
lead plaintiff.
Berman, DeValerio & Pease LLP, the largest firm in New England which represents shareholders in securities
class actions, has substantial experience in prosecuting accounting frauds. Recently, the firm served as sole
lead counsel in the shareholder class action involving Centennial Technologies. It has successfully litigated
numerous actions charging companies with issuing materially false and misleading statements, and has been
singled out for its excellence by many courts.
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