NEW YORK, Feb. 23, 2004 (PRIMEZONE) -- Wechsler Harwood LLP commenced a securities fraud class action lawsuit on February 20, 2004 in the United States District Court for the District of Arizona, on behalf of all purchasers of the common stock of Mobility Electronics, Inc. (Nasdaq:MOBE) ("Mobility" or the "Company") from September 2, 2003 through January 5, 2004, inclusive (the "Class Period").
The complaint charges Mobility Electronics, Inc., Charles R. Mollo and Joan W. Brubacher 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 throughout the Class Period, defendants repeatedly represented that it expected Mobility to earn $15 million in revenues for the fourth quarter of 2003, which was attributable in large part to the Company's agreement with Fellowes, Inc. ("Fellowes"), whereby Fellowes would globally market and distribute a line of Fellowes- branded power products from Mobility, as well as custom products based on Mobility's market-leading combination AC/DC technology, through its vast worldwide distribution network, encompassing nearly 30,000 retail stores (the "Fellowes Agreement"). In truth and in fact, however, unbeknownst to investors, by the start of the Class Period, Fellowes was not meeting its sales forecasts and, accordingly, Mobility was not generating the revenues and earnings it had anticipated from the Fellowes Agreement. Prior to disclosing these adverse facts to the investing public, Mobility completed a $15 million private placement, purchased assets from InVision Software and InVision Wireless using its artificially inflated stock as currency and Mobility insiders unloaded more than $6 million of their personally-held shares to the unsuspecting public.
Then, on January 5, 2004, Mobility shocked the market when it announced that it expected revenue for the fourth quarter of 2003 to be approximately $1.0 million to $1.3 million less than the Company's previous guidance of about $15 million.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Wechsler Harwood LLP. 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 are a member of the class described above, you may, not later than April 12, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Wechsler Harwood LLP, or other counsel of your choice, to serve as your counsel in this action.
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: