Metawave Communications Faces Investor Class Action, The Law Firm of Berman DeValerio Pease Tabacco Burt & Pucillo Says -- MTWV

Boston, Massachusetts, UNITED STATES


SEATTLE, April 8, 2002 (PRIMEZONE) -- Shareholders are pursuing a lawsuit against Metawave Communications Corp. (Nasdaq:MTWV), alleging the company used improper accounting to artificially inflate its stock price, Berman DeValerio Pease Tabacco Burt & Pucillo said today.

The class action was filed April 3, 2002 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).

Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, visit the firm's Website at www.bermanesq.com.

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 Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:


    Steven D. Morris, Esq.
    One Liberty Square
    Boston, MA 02109
    (800) 516-9926
    law@bermanesq.com

You may also visit the firm's Website at www.bermanesq.com.

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 Berman DeValerio 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.

Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco and West Palm Beach, Florida.

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



        

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