DENVER, May 29, 2008 (PRIME NEWSWIRE) -- Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit on behalf of purchasers of the common stock of NexCen Brands, Inc. ("NexCen" or the "Company") (Nasdaq:NEXC) between May 10, 2007 and May 19, 2008 ("Class Period"). The complaint was filed in the United States District Court for the Southern District of New York and charges NexCen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. A copy of the complaint is available online at www.DyerBerens.com.
If you are a purchaser of NexCen common stock during the Class Period, you have the legal right to petition the court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before July 28, 2008. If you are a NexCen investor and would like to discuss a potential lead plaintiff appointment, or your rights and interests with respect to the lawsuit, you may contact Jeffrey A. Berens, Esq. at 1-888-300-3362, 303-861-1764 or via email at jeff@dyerberens.com.
The class action complaint alleges that the defendants misrepresented and failed to disclose that: NexCen was able to finance a portion of its Great American Cookies acquisition by agreeing to an accelerated-redemption feature, which would force the Company to pay back half of its borrowing by a certain date; the Company was unable to comply with this accelerated-redemption feature, which would reduce the amount of cash available to the Company; the Company had no reasonable basis for its earnings guidance for fiscal 2008; and as a result of the foregoing, the Company's ability to continue as a going concern was in serious doubt.
On May 19, 2008, the Company announced that it expected to amend its Form 10-K annual report for the year ended December 31, 2007 and that its prior financial guidance for 2008 was "no longer applicable." In response, shares of the Company's stock fell more than 75%, on heavy trading volume.
Dyer & Berens LLP specializes in complex class action litigation on behalf of injured investors throughout the nation. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. Its attorneys have served as lead or liaison counsel in many securities fraud class actions, including: In re Qwest Comm'ns Int'l Sec. Litig.; Croker v. Carrier Access Corp.; UFCW Local 880-Retail Employers Joint Pension Fund v. Newmont Mining Corp.; Rasner v. FirstWorld Comm'ns, Inc.; In re ICG Comm'ns Sec. Litig.; Angres v. Smallworldwide, PLC; In re Ultimate Electronics, Inc. Sec. Litig.; Kerns v. SpectraLink Corp.; Queen Uno Ltd. v. Coeur d'Alene Mines Corp.; Toothman v. One-Stop Wireless of America; Gregg v. Sport-Haley, Inc.; and In re Tele-Communications, Inc. Sec. Litig.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca