NEW YORK, Aug. 9, 2005 (PRIMEZONE) -- The Rosen Law Firm (http://www.rosenlegal.com) announced today it has filed a class action lawsuit on behalf of purchasers of Host America Corporation (Nasdaq:CAFE) ("Host America" or the "Company") common stock during the period from July 12, 2005 and July 22, 2005, inclusive (the "Class Period"). The lawsuit names as defendants Host America, EnergyNSync, Geoffrey Ramsey, David Murphy, Roger Lockhart, and Peter Sarmanian.
To join the Host America litigation as a plaintiff or for further information, please call Laurence Rosen, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com.
You can join the class action online at http://www.rosenlegal.com. The complaint charges that On July 12, 2005, Host America issued a press release titled "Host America's Energy Division Announces Wal-Mart Transaction Ten Store First-Phase for LightMasterPlus." Market reaction to this announcement was fast and furious. Trading volume increased from 41,000 trades on July 11, 2005, to 13,813,100 on July 12, 2005. The Company's stock, which opened at $4.25 on July 12, 2005 prior to the announcement, closed at $6.35, after reaching a high of $7.47. Over the next eight trading days, volume reached a high of approximately 32,569,600 shares on July 18, 2005, and the Company's stock price reached a high of $16.88 on July 19, 2005. This stock price rise and increased volume were the result of false information issued to the market, according to the complaint.
The true facts, as alleged in the complaint, are that Wal-Mart had not actually purchased the LightMasterPlus, but that the "Wal-Mart Transaction" was limited to a test installation unrelated to any commitment by Wal-Mart to install the LightMasterPlus in any of its facilities on a permanent basis. In fact, Wal-Mart had made no commitment to purchase or install the LightMasterPlus outside of the test installation. As a result, defendants had no basis for stating that the test installation was a "first-phase roll-out" or that "the next phase will involve a significant number of stores." Moreover, defendants lacked any basis for stating that the Wal-Mart test installation was a "major event for our company." In fact, such test installations in the past had resulted in no future customer relationship and no actual purchases of the LightMasterPlus by the party solicited for the test demonstration.
On July 22, 2005, the SEC halted trading of Host America securities, as a result of the Wal-Mart related press release. At the time trading was halted, Host America stock was priced at $13.92 per share, down from $16.88 on July 19, 2005.
A class action lawsuit has already been filed on behalf of Host America shareholders. If you wish to serve as lead plaintiff, you must move the Court no later than 59 days from today. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact plaintiff's counsel, Laurence Rosen, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at lrosen@rosenlegal.com. You can also join this class action online at http://www.rosenlegal.com.
The Rosen Law Firm http://www.rosenlegal.com has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca