NEW YORK, Sept. 22, 2005 (PRIMEZONE) -- The law firm of Wofsey Rosen Kweskin & Kuriansky, LLP announces that a class action lawsuit has been commenced in the United States District Court for the District of Connecticut on behalf of all purchasers of Host America Corp. ("Host America" or the "Company") (Pink Sheets:CAFE) securities during the period from July 12, 2005 through July 22, 2005, inclusive (the "Class Period").
The action charges Host America and certain of its senior officers with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the Class Period -- of artificially inflating the price of Host America's shares.
Investors allege that during the Class Period, the Company made material misrepresentations concerning the nature of the business relationship between Host America and Wal-Mart, which triggered a run-up in Host America's stock price from $3.12 to $14.25 in a span of 9 trading days. Moreover, insiders of Host America profited handsomely from those misrepresentations, selling over $6.92 million of Host America securities just after this run-up.
On July 22, 2005, trading of Host America securities was halted, pending SEC review in regards to its misleading announcement made on July 12. At the time trading was halted, Host America stock was priced at $13.92 per share. When trading resumed, the price quickly fell to below $2.
Wofsey Rosen Kweskin & Kuriansky, LLP has extensive experience in complex commercial litigation. The firm is prosecuting this action together with Kirby McInerney & Squire LLP, a New York-based law firm with a specialty, and decades of experience in securities class action litigation.
If you are a member of the class described above, you may, no later than October 7, 2005, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. Section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, you can contact: