CASES
Powerwave Technologies, Inc.
Class Period: Feb 1, 2011 to Oct 18, 2011
Lead Plaintiff Deadline: Apr 9, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Powerwave Technologies, Inc. ("Powerwave" or the "Company") on behalf of purchasers and acquirers of Powerwave common stock between February 01, 2011 and October 18, 2011. This case has been filed in the USDC - California (Central).
The complaint alleges that, during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, Defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing a dramatic decline in demand from customers in its North American markets; (ii) that the Company was rapidly burning through its free cash flow as revenues declined and expenses increased; and (iii) that, as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its operations and earnings.
On October 18, 2011, Powerwave issued a press release announcing that "it anticipates that revenues for its fiscal third quarter ended October 2, 2011 will be in the range of $75 million to $79 million." Following the issuance of the press release, Powerwave held a conference call to discuss the announcement. During the conference call, Defendants admitted that the Company was performing poorly and burning through a substantial amount of free cash. In response to the announcement, on October 19, 2011, the price of Powerwave common stock declined from $1.46 per share to $0.85 per share, or 42%, on extremely heavy trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.