BATON ROUGE, La., April 8, 2002 (PRIMEZONE) -- An investor sued Metawave Communications Corp. (Nasdaq:MTWV) on behalf of investors, claiming the company artificially inflated its stock price, LeBlanc & Waddell LLC said.
The class action is pending in the U.S. District Court for the Western District of Washington and seeks damages for violations of federal securities laws on behalf of all investors who bought Metawave common stock from April 24, 2001 through March 14, 2002 (the Class Period).
The lawsuit alleges that the Washington-based communications company engaged in improper accounting and issued false and misleading financial statements to the public. According to the complaint, Metawave and some of its top officers highly touted customer demand and revenues for its Spotlight GSM line of cellular phone antenna systems throughout the Class Period. But the company's later actions showed those statements to be false, the complaint states. On March 14, 2002, Metawave announced a restructuring plan that included discontinuing the Spotlight GSM line due to lack of demand, the complaint says. The company took a $23 million charge against first quarter 2002 earnings as a result, according to the complaint.
Investors were further stunned, the complaint says, when Metawave revealed it had inflated its 2001 revenue by $5 to $7 million, or 11 to 16 percent of its total annual revenue, because of side-letters that allowed customers to return the Spotlight GSM product at no charge. According to the complaint, the company admitted that recognizing that revenue violated Generally Accepted Accounting Principles and that Metawave would have to restate its financial results for 2001.
The revelations prompted a 71% decline of Metawave's stock price, which fell from a closing price of $1.10 on March 14, 2002 to $0.32 on March 15, 2002.
If you purchased Metawave common stock during the period April 24, 2001 through March 14, 2002, you may wish to contact the following attorney at LeBlanc & Waddell LLC to discuss your rights and interests:
Roger LeBlanc, Esq.
LeBlanc & Waddell, LLC
5353 Essen Lane, Suite 420
Baton Rouge LA 70809
rogerleblanc@lw-law.net
(800) 988-3514
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than May 20, 2002. You may contact the attorneys at LeBlanc & Waddell LLC to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
With offices in Baton Rouge, New Orleans, Shreveport, Monroe and Slidell, Louisiana, LeBlanc & Waddell, LLC represents investors in securities class action lawsuits and has experience in prosecuting class actions. The firm prides itself on its responsiveness to shareholders and their needs in each case.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca