Insider Selling/Undisclosed Related Party Transactions
Product or Service
This is a securities fraud class action lawsuit brought against Powerwave and certain of its officers and directors.
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 Powerwave 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 class action complaint further alleges that Powerwave materially misrepresented and failed to disclose numerous conditions that adversely affected Powerwave, 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 Powerwave'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; and
(4) make it possible for Powerwave insiders to sell millions of dollars of their privately held shares while in possession of material adverse non-public information.
Name (Stock Symbol)
Powerwave Technologies, Inc. (PWAV)
Powerwave Technologies, Inc. supplies wireless solutions for wireless communications network.
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