SOURCE: Host America Corp.

August 11, 2005 13:01 ET

Kaplan Fox Seeks to Recover Losses for Investors Who Purchased Host America Corp. Common Stock

NEW YORK, NY -- (MARKET WIRE) -- August 11, 2005 -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit in the United States District Court for the District of Connecticut against Host America Corp. ("Host America" or the "Company") (NASDAQ: CAFE) and certain of its officers, directors and certain shareholders, on behalf of all persons or entities who purchased the publicly traded common stock of Host America between July 12, 2005 and July 22, 2005, inclusive (the "Class Period").

The complaint alleges that during the Class Period, Host America and certain of its officers, directors and/or certain shareholders violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 (the "Exchange Act") by making a series of materially false and misleading statements concerning the nature and scope of the Company's business relationship with Wal-Mart, resulting in the price of Host America's stock being artificially inflated during the Class Period. It is further alleged that certain defendants violated Section 20A of the Exchange Act by improperly selling during the Class Period vast amounts of their respective stock holdings in the Company, reaping millions of dollars in proceeds.

On July 22, 2005, the Securities and Exchange Commission ordered a suspension of trading in Host America securities and on July 25, 2005, the Company disclosed that "the SEC had commenced a formal investigation of Host, certain of its officers, directors and others in connection with a press release issued by Host on July 12, 2005 relating to dealings between Host and Wal-Mart Stores Inc."

On August 5, 2005, Host America announced that it "was notified by the Nasdaq Stock Market ('Nasdaq') that based on a review of public documents and information provided by Host to Nasdaq, related to the issuance of a July 12, 2005 press release, the staff of Nasdaq Listing Investigations and Listing Qualifications has determined that Host no longer qualifies for inclusion in the Nasdaq stock market and its securities are therefore subject to delisting… "

As of the time of this release, trading in the securities of Host America remains halted.

If you are a member of the proposed Class, you may move the court no later than October 7, 2005 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:

Contact Information

  • Frederic S. Fox
    Joel B. Strauss
    Donald R. Hall
    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    805 Third Avenue, 22nd Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: Email Contact

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    555 Montgomery Street, Suite 1501
    San Francisco, California 94111
    (415) 772-4700
    Fax: 415-772-4707
    E-mail address: Email Contact