NEW YORK, March 22, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against Metawave Communications Corporation ("Metawave") (Nasdaq:MTWV) in the United States District Court for the Western District of Washington, on behalf of all persons or entities who purchased Metawave common stock during the period from April 24, 2001 through March 14, 2002.
The complaint charges Metawave Communications Corporation and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants caused Metawave's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, Metawave was able to complete private placement offerings, raising net proceeds of $30 million during the Class Period.
On March 14, 2002, after the close of the markets, Metawave issued a press release disclosing several issues concerning the company, including: (a) that the company would be restating its 2001 earnings, reducing revenue by $5 million to $7 million out of the $43.6 million of total revenue previously reported, a change of 11% to 15%, because of "unauthorized commitments" made to customers in Asia; (b) that the company would terminate its SpotLight GSM product line due to "insufficient customer demand"; (c) that it would close it Taiwan facilities, cut its Chinese operation and reduce its United States workforce by 42% in an effort to lower operating expenses; (d) that the restructuring would result in a first quarter (2002) charge of $23 million to cover inventory and accounts receivable write-offs, employee severance, facilities closures and other shutdown costs; (e) that the company had fired their Chief Financial Officer, Stuart Fuhlendorf; and (f) that the company had revised its first quarter 2002 revenue guidance to about $6 million, well below the $8.5 million to $9 million range Wall Street had been led to expect for the Company's first quarter (2002) revenue. After disclosure of this news, Metawave's shares lost more than 70% of their value.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Metawave securities during the Class Period. If you purchased or otherwise acquired Metawave securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Metawave securities during the Class Period, you may, no later than May 17, 2002, request that the Court appoint you as lead plaintiff.
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 plaintiffs.'' Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email JHaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca