NEW ORLEANS, March 24, 2007 (PRIME NEWSWIRE) -- Kahn Gauthier Swick, LLC ("KGS") announces that it has commenced an investigation into U.S. Auto Parts Network, Inc. ("U.S. Auto" or the "Company") (Nasdaq:PRTS) to determine whether it has violated federal securities laws by selling stock pursuant to a materially false and misleading prospectus in or about February, 2007.
Shares of U.S. Auto sunk to $6.08 per share on Friday, more than 50% lower than the highs achieved in the days after the February, 2007 IPO, after the Company said it may post a loss in the first quarter. After the markets closed Tuesday, U.S. Auto predicted its first-quarter results will come in between break-even and a 2-cent-per-share loss. The Company also reported it broke even per share in the fourth quarter, versus a profit of 16 cents per share in the year-ago quarter.
KGS will also investigate Company insiders to determine whether they sold millions of dollars of stock in the IPO in violation of federal securities laws.
If you are a U.S. Auto shareholder or purchased shares in the IPO or shortly thereafter, and would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or by email at lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit www.kgscounsel.com.