Lawsuit claims music distributor withheld critical warning from NASDAQ, allowing share prices to soar --
-- Lawsuit claims music distributor withheld critical warning from NASDAQ, allowing share prices to soar --
Tuesday November 24, 6:06 pm Eastern Time
Company Press Release
PHOENIX--(BUSINESS WIRE)--Nov. 24, 1998-- The Phoenix law firm of Hagens Berman & Mitchell has
joined in a class action suit originally filed Nov. 20, 1998 in US District Court for the Southern District of
California against music distributor K-Tel International, Inc., which distributes music and entertainment
products through retail stores and direct response marketing.
The complaint alleges that K-Tel committed federal securities violations by failing to maintain ''minimum
tangible net asset requirement for listing'' on NASDAQ and that NASDAQ notified K-Tel in October 1998
that the company's assets were insufficient and K-Tel would soon be delisted from that market. According to
the lawsuit, K-Tel withheld this important information from shareholders when announcing a new Internet sales
venture, allowing the stock to soar to an artificially inflated price during the class period.
The suit was filed on behalf of shareholders who purchased K-Tel stock (Nasdaq:KTEL - news) during a period
from Oct. 27 through November 17 1998. Any such shareholders may, no later than 60 days from Nov. 19,
1998, move the Court to serve as lead plaintiff of the Class, but must meet certain legal requirements to do so.
Interested shareholders should contact Stephanie Levin, counsel at Hagens Berman & Mitchell at
602/840-5900; toll free at 888/381-2889 or via email at Stephanie@hagens-berman.com. More information
is available online at www.Hagens-Berman.com.
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