Contact Information: Contact: Lewis Kahn Managing Partner Kahn Gauthier Swick, LLC Toll Free 1-866-467-1400, ext. 106 lewis.kahn@kgscounsel.com www.kgscounsel.com
KGS Announces Filing of Shareholders Securities Fraud Class Action Against Powerwave Technologies, Inc. -- (Nasdaq: PWAV)
| Source: Kahn Gauthier Swick, LLC
New Orleans, LA -- (MARKET WIRE) -- February 1, 2007 -- Kahn Gauthier Swick, LLC ("KGS") has filed
the first class action lawsuit in the United States District Court for the
Central District of California, Southern Division, on behalf of
shareholders who purchased, exchanged or otherwise acquired the common
stock of Powerwave Technologies, Inc. ("Powerwave" or the "Company'')
(NASDAQ : PWAV ) between May 2, 2005 and October 9, 2006 (the "Class
Period").
Powerwave and certain of its officers and directors are charged with
issuing a series of materially false and misleading statements in violation
of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated
thereunder. 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. This sudden and shocking
disclosure, in the face of repeated Company reports of "record" setting
growth and profitability, had an immediate impact on the price of Powerwave
stock, which declined almost 20% in the single trading day -- marking a
decline of almost $10 per share from the Class Period high reached only
several months earlier.
The Complaint alleges that Powerwave materially misrepresented and failed
to disclose numerous conditions that adversely affected the Company,
permitting defendants to: (1) deceive shareholders concerning the business,
operations, management and the intrinsic value of Powerwave common stock;
(2) artificially inflate the price of the Company's shares, ultimately
purchased by misled shareholders; (3) 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; (4) make it possible for Company
insiders to sell millions of dollars of their privately held shares while
in possession of material adverse non-public information.
If you wish to serve as lead plaintiff in this case, you must move the
Court no later than 60 days from today. Any member of the purported class
may move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member. If
you would like to discuss your legal rights, you may e-mail or call KGS,
without obligation or cost to you. You may contact Managing Partner Lewis
Kahn of KGS direct, toll free 1-866-467-1400, ext. 106, or by email at
lewis.kahn@kgscounsel.com. To learn more about this case or KGS, you may
visit www.kgscounsel.com.
SPECIAL NOTICE: While federal law does not prohibit other lawyers from
"announcing" this class action through the issuance of other press
releases, KGS is the law firm that researched, investigated, drafted and
filed the securities fraud case against Powerwave. If you are a Powerwave
shareholder who decides to contact one of these lawyers, KGS reminds you to
fully interview any such lawyer to assure that they thoroughly understand
the facts surrounding the claims KGS has filed in Court.