NEW YORK, March 19, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Western District of Washington on behalf of all purchasers of Metawave Communications Corporation (Nasdaq:MTWV) common stock during the period from April 24, 2001 and March 14, 2002, inclusive (the "Class Period").
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our Website at www.kmslaw.com, which offers summary and detailed information concerning the case, or contact us by phone at (888) 529-4787 or by email at dtran@kmslaw.com.
The action charges Metawave Communications Corporation ("Metawave"), as well as Metawave's chief executive officer and chief financial officer, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The violations, as the complaint alleges, stem from the issuance of allegedly false and misleading financial statements and financial projections during the Class Period, which had the effect -- during the class period -- of artificially-inflating the price of Metawave's shares. The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased Metawave's shares during the Class Period, excluding defendants and their affiliates.
On March 14, 2002, after the close of the markets, Metawave issued a press release disclosing a number of surprises concerning the company, including:
(1) that it would restate its 2001 earnings, reducing revenue by $5 million to $7 million out of the $43.6 million of total revenue previously reported, a change of 11% to 15%, because of "unauthorized commitments" made to customers in Asia;
(2) that it would terminate its SpotLight GSM product line due to "insufficient customer demand";
(3) that it would close its Taiwan facilities, cut its Chinese operation and reduce its United States workforce by 42% in an effort to lower operating expenses;
(4) that the restructuring would result in a first quarter (2002) charge of $23 million to cover inventory and accounts receivable write-offs, employee severance, facilities closures, and other shutdown costs;
(5) that it had fired its Chief Financial Officer, Stuart Fuhlendorf; and
(6) that it had revised its first-quarter 2002 revenue guidance to about $6 million, well below the $8.5 million to $9 million range Wall Street had been led to expect for the Company's first quarter (2002) revenue.
After disclosure that Metawave's current financial results would not be as expected, and that previously-reported financial results would be even lower than reported, Metawave's shares swiftly lost more than 70% of their value.
Plaintiff is represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's Website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than May 17, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Pamela E. Kulsrud, Esq. Diem Tran KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: dtran@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca