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From: Recent Class Action Filings, End Fraud.com
Time: 7:28:42 AM
EndFraud has a very interesting site which follows securities class actions and reports on the latest suits that have been filed. It is an interesting place to visit and they provide solid information.
"H A V E Y O U H E A R D" By EndFraud.com
April 24, 1999
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1. RECENTLY FILED ACTIONS A. Iridium World Communications, Inc. (Nasdaq: IRID) B. Osicom Technologies, Inc. (Nasdaq: FIBR) C. Remec, Inc. (Nasdaq:REMC) =================
Iridium World Communications, Inc. (Nasdaq: IRID)
A class action lawsuit was filed in the United States District Court for the District of Columbia on behalf of investors who purchased Iridium World Communications, Inc. (Nasdaq: IRID) ("Iridium" or the "Company") stock.
The lawsuit charges Iridium, certain officers and directors of Iridium, and Motorola, Inc. ("Motorola") with violations of the federal securities laws and regulations of the United States. The Complaint alleges that during the Class Period, defendants issued false and misleading statements and failed to disclose material facts concerning the Company's ability to fully launch the Iridium System. Specifically, during the Class Period, defendants falsely reported achievable subscriber numbers and revenue figures, failed to disclose the serious technical problems with the Iridium System, failed to disclose delays in handset production which resulted in a shortage of the necessary handsets which were required to operate the Iridium System, and that, absent achieving the requisite subscriber numbers and revenue figures, the Company would violate covenants between itself and its lenders.
The Company's fraudulent practices were disclosed on March 29, 1999 when, for the first time, the Company disclosed that it would not meet its necessary subscriber numbers and that as a direct consequence would not be able to satisfy its Secured Credit Facility covenants. Accordingly, the Company's common stock dropped approximately 73% since its May 1998 high. ============
Osicom Technologies, Inc. (Nasdaq: FIBR)
A class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of Osicom Technologies, Inc. (Nasdaq: FIBR) from July 2, 1998 through April 20, 1999, inclusive (the "Class Period").
The complaint charges Osicom and certain of its officers and directors with issuing false and misleading statements that the Company had a $90 million contract with a customer in Japan when in fact the contract was worth only $175,000. =====
Remec, Inc. (Nasdaq:REMC)
A class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of REMEC, Inc. ("REMEC") (Nasdaq:REMC) common stock during the period between Dec. 1, 1997 and June 12, 1998 (the "Class Period").
The complaint charges REMEC and certain of its officers and directors and its underwriters with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants' false statements about continuing strong demand for REMEC's microwave electronic products (especially for the commercial market), its growing backlog of orders (especially for commercial products), the success of REMEC's Q-bit Corp. acquisition and REMEC's prospects for strong continuing revenue, profit margin and net income growth for the next several years, which would result in EPS of $.89-$.91 and $1.21-$1.22 for F99-F00 to end 1/31/99 and 1/31/00, respectively, and 30%-40% EPS growth going forward, artificially inflated REMEC's stock to $30 on 2/17/98 from $19-1/2 on 12/1/97. On 2/25/98, REMEC and its insiders sold 2,990,000 shares of REMEC stock, in a secondary offering at $26.50 per share for $79.2 million. REMEC stock went on to reach its Class Period high of $30-1/4 on 4/6/98. But then, between 5/28/98 and 6/12/98, REMEC's stock dropped on a series of adverse revelations. First, on 5/28/98, when REMEC revealed adjustments to orders from its largest customers, REMEC's stock plunged by $7.72, 36%, to $13-13/16 on huge volume of over four million shares, the largest one-day percentage price decline on the largest one-day trading volume in REMEC's history as a public company. Then, on 6/12/98, when REMEC revealed that its 2ndQ F99 revenues would decline from its 1stQ F99 revenues and that its F99-F00 EPS would be much worse than earlier forecast, REMEC's stock fell to $9 and then continued to decline to as low as $7 by 7/98. ============
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