NEW YORK, April 16, 2007 (PRIME NEWSWIRE) -- Harwood Feffer LLP today announced that a class action suit has been commenced on behalf of all persons who purchased the common stock of Wireless Facilities, Inc. ("WFI" or the "Company") (Nasdaq:WFII) between March 29, 2001 and March 12, 2007, both dates inclusive (the "Class Period").
The action is pending in the United States District Court for the Southern District of California, and names as defendants, the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Harwood Feffer web site at www.hfesq.com.
The Complaint charges defendants with violations of Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14a-9 promulgated thereunder. The Complaint alleges that, during the Class Period, the defendants issued materially false and misleading statements regarding the Company's business, management practices, systems and controls, and financial results, and failed to disclose: (i) that the Company had engaged in an illegal stock option backdating scheme; (ii) that the Company had improperly understated executive compensation expenses in its public financial statements filed with the SEC; (iii) that the Company's financial reports filed with the SEC were materially overstated, did not accord with the GAAP standards and violated the pertinent provisions of the Internal Revenue Code; and (iv) that as a result of the foregoing, the Company stock traded at artificially inflated prices throughout the Class Period.
The defendants' wrongdoing was finally exposed on March 12, 2007, when WFI stunned investors with its announcement of an ongoing internal investigation of the Company's improper stock option grant practices and would have to delay the filing of the Company's 2006 annual financial results as a result of the discovery of misdated stock option grants issued between 1998 and 2003. WFI further disclosed that as a result of the foregoing, "there is a strong likelihood" that it would be required to restate the Company's financial reports filed with the SEC during the Class Period. Upon news of the upcoming restatement, on March 13, 2007, the price of WFI stock plummeted to $1.62 per share from its prior day closing price of $2.10, amounting to a 23% market value drop in a single trading day, on heavy trading volume.
Subsequently, the Company disclosed on March 28, 2007, that "it had received a NASDAQ Staff Determination notice on March 22, 2007, indicating that the Company had failed to comply with the requirement for continued listing set forth in NASDAQ Marketplace Rule 4310(c)(14) because the Company has not yet filed its Form 10-K for the period ended December 31, 2006, and that its securities are, therefore, subject to delisting from the NASDAQ Global Select Market." As a result of the Staff Determination notice, the Company "requested a hearing before a NASDAQ Listing Qualifications Panel (the "Panel") to appeal the Staff Determination."
If you are a member of the class described above, you may, not later than May 18, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. 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 serve as a lead plaintiff. You may retain Harwood Feffer, or other counsel of your choice, to serve as your counsel in this action.
Harwood Feffer has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. The Harwood Feffer website (www.hfesq.com) contains additional information about the firm. You may view a copy of the initial complaint, find more information about this and other matters, and obtain information about your rights by visiting the firm website or by contacting Jeffrey M. Norton at 877-935-7400 (ext. 286), Tanya Korkhov (ext. 207) or another firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca