Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against K-Tel International, Inc. and Others
Wednesday November 25, 2:58 pm Eastern Time
Company Press Release
SEATTLE--(BUSINESS WIRE)--Nov. 25, 1998--The following Notice is issued by the law firm of Cohen,
Milstein, Hausfeld & Toll, P.L.L.C. on behalf of its client, who on Nov. 25, 1998 filed a lawsuit in the United
States District Court for the District of Minnesota on behalf of persons who purchased the common stock of
K-Tel International, Inc. (Nasdaq:KTEL - news) between Oct. 27, 1998 and November 17, 1998 inclusive (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 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 Nov. 17, 1998, K-TEL shares plummeted to just $12 per share, 1/3 of its perceived value just
days before.
Plaintiff's counsel in this action -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (www.cmht.com) -- has significant
experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in
Washington D.C. and Seattle and is active in major litigation pending in federal and state courts throughout the
nation. The firm's reputation for excellence has been recognized on repeated occasion by the courts, which
have appointed the firm to lead positions in complex multi-district or consolidated litigation, including numerous
cases on behalf of defrauded investors.
If you are a member of the Class who purchased K-Tel common stock between Oct. 13, 1998 to Nov. 17, 1998
(the ''Class Period''), you may move the Court, not later than sixty days from Nov. 19, 1998, to serve as lead
plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.
If you have any questions about this Notice or the action, or with regard to your rights, please contact any one
of the following attorneys: Herbert E. Milstein (hmilstein@cmht.com) at 888/240-0775 or 202/408-4600,
1100 New York Ave. NW, West Tower, Suite 500, Washington, DC, 20005, or Steven J. Toll
(stoll@siteconnect.com) at 888/240-1238 or 206/521-0080, 999 Third Avenue, Suite 3600, Seattle,
Washington, 98104.
Contact:
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
Herbert E. Milstein, 202/408-4600
Toll Free, 888/240-0775
hmilstein@cmht.com
or
Steven J. Toll, 206/521-0080
Toll Free, 888/240-1238
stoll@siteconnect.com
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