SOURCE: Kahn Gauthier Swick, LLC

February 01, 2007 10:30 ET

KGS Announces Filing of Shareholders Securities Fraud Class Action Against Powerwave Technologies, Inc. -- (Nasdaq: PWAV)

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 To learn more about this case or KGS, you may visit

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.

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