HARTFORD, Conn., Nov. 29, 2006 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of all persons who purchased or otherwise acquired the common stock of Pegasus Wireless Corporation ("Pegasus" or the "Company") (Pink Sheets:PGWC) between December 22, 2005 and September 5, 2006, inclusive, (the "Class Period"). Also included are those who acquired Pegasus through its acquisitions of SKI Technologies and AMAX Engineering.
The Complaint alleges that Pegasus and certain of its officers and directors violated federal securities laws. Investors were surprised to learn the following adverse information in an August 24, 2006 report published by The MotleyFool.com: (i) Pegasus failed to disclose CEO Jasper Knabb's and CFO Stephen Durland's close business ties with convicted felons; (ii) Pegasus failed to disclose a series of related party transactions and the manner in which Knabb purchased more than $26 million in Pegasus stock; and (iii) Pegasus withheld pertinent information involving Knabb's history with penny stock companies with suspicious trading patterns. On this news, Pegasus shares declined almost 25% from the closing price of $7.60 per share two days earlier. At the close of the Class Period, a report by Barron's revealed that: (i) Knabb had previously been arrested for possible insurance fraud; (ii) Two former Knabb companies -- BIFS Technologies, formerly Biofiltration Systems, and Wireless Frontier -- evidenced suspected stock and market manipulation; and (iii) Pegasus failed to disclose the truth concerning the novelty and uniqueness of its products and the foreseeability to compete in the current marketplace. On September 5, 2006, shares of Pegasus plummeted to $1.10 per share, falling over 36.5%.
If you are a member of the class, you may, no later than January 8, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net