Harwood Feffer LLP ( www.hfesq.com) is investigating potential claims against the board of directors of Powerwave Technologies, Inc. (“Powerwave” or the “Company”) (NASDAQ: PWAV), concerning whether the board has breached its fiduciary duties to shareholders.
Throughout 2011, certain of the Company’s officers and directors made positive statements about the Company’s prospects and financial results. However, Powerwave investors were 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. Moreover, since these facts have emerged, Powerwave has increasingly become the focus of costly public and legal scrutiny.
A securities class action filed in the United States District Court for the Central District of California alleges that 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: (i) 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.If you own Powerwave shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
|Robert I. Harwood, Esq.|
|Matthew M. Houston, Esq.|
|Harwood Feffer LLP|
|488 Madison Avenue|
|New York, New York 10022|
|Phone Numbers:||(877) 935-7400|
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