HARTFORD, Conn., Feb. 2, 2007 (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 Central District of California on behalf of all persons who purchased or otherwise acquired the common stock of Powerwave Technologies, Inc ("Powerwave" or the "Company") (Nasdaq:PWAV) between May 2, 2005 and October 9, 2006, inclusive, (the "Class Period"). Also included are those who received Powerwave stock in return for the acquisitions of various assets.
The Complaint alleges that Powerwave and certain of its officers and directors violated Federal Securities laws. Specifically, Powerwave materially misrepresented and failed to disclose numerous conditions that adversely affected the Company, permitting defendants to: (i) deceive shareholders concerning the business, operations and management; (ii) artificially inflate the price of the Company's shares; (iii) register for sale with the SEC millions of shares of stock that were sold to the public or used to acquire assets of other unwitting companies; and (iv) allow Company insiders to sell millions of dollars of their privately held shares while in possession of material adverse non-public information.
On October 9, 2006, investors learned that Powerwave's 2006 third quarter results would be only $155 million, significantly lower than the $230-$250 million previously forecast. On this news, and in the face of repeated Company reports of "record" setting growth and profitability, the price of Powerwave stock declined almost 20%.
If you are a member of the class, you may, no later than April 2, 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, P.C. 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, P.C. toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.