LITTLE ROCK, Ark., July 20, 2001 (PRIMEZONE) -- The law firm of Cauley Geller Bowman & Coates, LLP announced today that it had filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of purchasers of U.S. Wireless Corporation ("U.S. Wireless" or the "Company") (Nasdaq:USWC) (Nasdaq:USWCE) publicly traded securities during the period between June 29, 1999 and May 25, 2001, inclusive (the "Class Period").
A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/us_wireless.pdf. The class period is being expanded to include purchases between July 14, 1998 and May 25, 2001, inclusive.
The complaint charges U.S. Wireless and its former Chairman and CEO with violations of the Securities Exchange Act of 1934. The Company, through a national network of wireless location systems, enables wireless carriers to offer location-enhanced services, including 911 caller pinpointing, localized news and traffic updates, vehicle and asset tracking, and carrier network management services. The complaint alleges that during the Class Period, in order to conceal their self dealing transactions, defendants caused the Company to falsely report its results for fiscal 2000 through improper characterization of the benefit and the beneficiaries of the issuance of shares of the Company's stock. As a result of this mischaracterization, the Company's net loss attributable to common shareholders was understated by $6.2 million, or 35%. Ultimately, U.S. Wireless revealed that its results for fiscal 2000 were in error and would be restated to record the share issuances at fair market value and record a loss of $5.3 million for the shares and $0.9 million for certain tax effects. Absent defendants' improper accounting, the Company would have reported much less favorable fiscal 2000 earnings.
On May 29, 2001, Nasdaq issued an unusual press release entitled "Nasdaq Halts Trading of U.S. Wireless Corporation and Requests Additional Information from Company." On this news U. S. Wireless shares were halted from trading at $2.91, 88% lower than the Class Period high of $24.50.
If you bought the publicly traded securities of U.S. Wireless between July 14, 1998 and May 25, 2001, inclusive, you may, no later than September 10, 2001, 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 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 Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca