Insider Sellers Named as Defendants in Fraud Lawsuit Filed on Behalf OfPurchasers of Westell Industries, Inc.
LITTLE ROCK, Ark., Nov. 3 /PRNewswire/ -- The following is an announcement from the law firm of Cauley & Geller, LLP:
The law firm of Cauley & Geller, LLP announced today that in its class action securities fraud lawsuit filed against Westell Technologies, Inc. (Nasdaq: WSTL) ("Westell" or the "Company"), that it also named Marc Zionts, Westell's Chief Executive Officer ("CEO"), William J. Nelson, Westell's President and Chief Operating Officer ("COO"), Bruce Albelda, Westell's director of Investor Relations, and Howard L. Kirby, Jr. and Thomas A. Reynods, two members of the Company's Board of Directors, as defendants.
The complaint charges that Zionts, Nelson, Albelda, Kirby and Reynolds misrepresented the level of demand for Westell's products from SBC Communications, when they knew since June of 2000 that SBC would be purchasing significantly fewer modems from the Company. While this information was known to Zionts, Nelson, Kirby and Reynolds, and while Westell's stock price was peaking at about $30 per share, these individuals sold $11 million of their personal holdings in Westell common stock. The complaint alleges the following insider trades:
Date Who Shares Transaction
1-Aug-00 KIRBY, HOWARD L Director 10,000 Sold at $22.79/Share.
Proceeds of $227,900.
31-Jul-00 KIRBY, HOWARD L Director 20,000 Sold at $23.80/Share.
Proceeds of $476,000.
28-Jul-00 KIRBY, HOWARD L Director 10,000 Sold at $23.53/Share.
Proceeds of $235,300.
27-Jul-00 KIRBY, HOWARD L Director 10,000 Sold at $26.76/Share.
Proceeds of $267,600.
26-Jul-00 KIRBY, HOWARD L Director 10,000 Sold at $29.09/Share.
Proceeds of $290,900.
25-Jul-00 KIRBY, HOWARD L Director 10,000 Sold at $27.69/Share.
Proceeds of $276,900.
25-Jul-00 ZIONTS, MARC Director, 25,000 Exercised Options at
Chief Executive Officer $6.77 /Share and Sold at
28.05/Share. Proceeds
of $532,000.
25-Jul-00 ZIONTS, MARC Director, 30,000 Sold at $28.05/Share.
Chief Executive Officer Proceeds of $841,500.
24-Jul-00 KIRBY, HOWARD L Director 10,000 Sold at $28.31/Share.
Proceeds of $283,100.
24-Jul-00 REYNOLDS, THOMAS A 12,200 Sold at $28.46/Share.
III Director Proceeds of $347,212.
24-Jul-00 REYNOLDS, THOMAS A 15,000 Sold at $28.46/Share.
III Director Proceeds of $426,900.
24-Jul-00 ZIONTS, MARC Director, 147,500 Exercised Options at
Chief Executive Officer $6.22/Share and Sold at
28.95/Share. Proceeds
of $3,352,675.
24-Jul-00 ZIONTS, MARC Director, 28,940 Sold at $28.25 -
Chief Executive Officer $28.95/Share. Proceeds
of $831,555.
21-Jul-00 NELSON, J WILLIAM, 100,000 Sold at $27.38/Share.
President Director, Proceeds of $2,738,000.
Chief Operating Officer
If you purchased or otherwise acquired Westell securities between June 27th and October 18th, 2000 (the "Class Period"), and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 26, 2000. You may also choose Cauley & Geller, LLP to represent you.
Cauley & Geller, LLP has substantial experience in prosecuting class action lawsuits on behalf of investors. The firm has offices in Arkansas, California, and Florida, but represents shareholders from throughout the nation. If you have any questions regarding this lawsuit or how you may be able to recover for the losses you have incurred, you are encouraged to visit our website at www.classlawyer.com, or E-mail or call us at:
CAULEY & GELLER, LLP
11311 Arcade Drive, Suite 201
Little Rock, AR 72212
E-mail: info@classlawyer.com
1-888-551-9944 - toll free
SOURCE Cauley & Geller, LLP
CO: Cauley & Geller, LLP
ST: Arkansas
IN:
SU: LAW
11/03/2000 18:29 EST prnewswire.com |
