NEW YORK, Sept. 1, 2005 (PRIMEZONE) -- In its ongoing efforts to assist investors in Host America Corporation (Nasdaq:CAFE) (Nasdaq:CAFEW), Murray, Frank & Sailer LLP is issuing this notice to update investors regarding the class action lawsuits that have been filed against Host America in connection with its July 12, 2005 press release. After a significant independent investigation, Murray, Frank & Sailer LLP filed the first of several class action lawsuits against Host America on August 8, 2005 alleging that the July 12, 2005 Form 8-K and press release were false and misleading. A copy of the complaint and initial notice can be obtained at http://www.murrayfrank.com/CM/NewCases/NewCases280.asp.
The complaint filed by Murray, Frank & Sailer LLP alleges that "Wal-Mart was not a customer of the Company's in connection to purchasing the LightMasterPlus . . . Wal-Mart had made no commitment to purchase or install the LightMasterPlus outside of the test installation" and therefore, defendants had no basis for stating that the test installation was a "first-phase roll-out," that "the next phase will involve a significant number of stores," or that the purported installation was a "major event for our company." On August 31, 2005, Host America issued a press release updating investors about the ongoing investigation into its July 12, 2005 notice. In the press release, Host America informed investors that the Company "never had a written agreement" or "any agreement for the installation of LightMasterPlus(r)" with Wal-Mart and that nearly two months after Host America's announcement on July 12, 2005, "neither Host nor its wholly-owned energy management subsidiary R.S. Services, Inc. has received from Wal-Mart a list of the 10 stores to be surveyed." In reaction to Host America's August 31, 2005, corrective disclosure, the price of the Company's common stock closed on September 1, 2005, down $10.54 per share, or more than 73 percent.
As set forth in the August 8, 2005 notice issued by Murray, Frank & Sailer LLP (http://www.murrayfrank.com/CM/NewCases/NewCases280.asp), you may move to serve as Lead Plaintiff no later than October 7, 2005. In appointing a Lead Plaintiff, the court will consider, among other factors, the financial interest, as established by losses incurred as a result of the alleged fraud, of each of the Lead Plaintiff movant(s). Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi, Christopher S. Hinton or Bradley P. Dyer of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca