Robbins Umeda LLP Announces the Filing of a Class Action Lawsuit Against Powerwave Technologies, Inc.
Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the United States District Court for the Central District of California on behalf of purchasers of Powerwave Technologies Inc. (NASDAQ: PWAV) shares between February 1, 2011 and October 18, 2011 (the “Class Period”). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
The complaint alleges that during the Class Period, certain officers and directors at Powerwave issued a series of false and misleading statements to investors regarding the company’s business and prospects. Specifically, these officers and directors misrepresented and/or failed to disclose that: (1) the company was experiencing a dramatic decline in demand from customers in its North American markets; and (ii) the company was rapidly burning through its free cash flow as revenues declined and expenses increased.
Powerwave investors were first alerted to the true condition of the company’s business on October 18, 2011, when Powerwave issued a press release announcing that it anticipated revenues for its fiscal third quarter to be in the range of $75 million to $79 million. This figure was less than half of analyst expectations of revenue of $168.4 million. Following the issuance of the press release, after trading hours on October 18, 2011, Powerwave held a conference call to discuss the announcement. During the conference call, certain officials admitted that the Company was performing poorly and burning through a substantial amount of free cash. On this news, on October 19, 2011, the value of Powerwave common stock declined from $1.46 per share to $0.85 per share, or 42%, on extremely heavy trading volume. In addition, since these facts have emerged, Powerwave has increasingly become the focus of costly public and legal scrutiny.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.