NEW YORK, Sept. 27, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the publicly traded securities of Host America Corp. ("Host America" or the "Company") (Pink Sheets:CAFE) acquiring the stock between July 12, 2005 and July 22, 2005, both dates inclusive (the "Class Period").
The action, entitled, Reeves v. Host America Corp., et al., Case No. 05-CV-(not yet assigned), is pending in the United States District Court for the District of Connecticut, and names as defendants, the Company, its Chief Executive Officer and President, Geoffrey W. Ramsey, and its Chief Financial Officer, David J. Murphy. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding the Company's purported agreement with Wal-Mart stores to install its LightMaster Plus lighting system in ten Wal-Mart stores as a "first-phase roll-out." The Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts, which were known to defendants or recklessly disregarded by them: 1) that the Company's relationship with Wal-Mart was limited to a test installation; 2) that Host America had no agreement for any subsequent installations in other Wal-Mart stores; and 3) as a result, defendants had no basis for stating that the test installation was a "first-phase roll-out" or that "the next phase will involve a significant number of stores." In fact, defendants lacked any basis for stating that the Wal-Mart test installation was a "major event for our company." Such test installations in the past had resulted in no future customer relationship and no actual purchases of the LightMaster Plus by the party solicited for the test demonstration.
These false and misleading statements caused Host America's stock price to skyrocket from a close of $3.12 per share on July 11, 2005, to an intra-day high of $16.88 per share on July 19, 2005, only one week later. Then, on July 22, 2005, the Securities and Exchange Commission ("SEC") halted trading in the Company's shares amid concerns that the Company's July 12 press release regarding its Wal-Mart test installation had been "misleading." Prior to the halt in trading, Host America insiders sold millions of dollars worth of their Host America shares at artificially inflated prices.
If you are a member of the class described above, you may, not later than October 7, 2005, 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 Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP Jeffrey M. Norton, Esq. jmn@whesq.com 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 http://www.whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca