Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Powerwave Technologies, Inc.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of Powerwave Technologies, Inc. (“Powerwave” or the “Company”) (NasdaqGS: PWAV) between February 1, 2011 and October 18, 2011 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 (the “Complaint”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Scott J. Farrell, Esquire of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/powerwave-technologies-inc-pwav
Powerwave designs, manufactures, markets and sells wireless solutions for communications networks worldwide. The Complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding Powerwave’s business and prospects. Specifically, the Complaint alleges defendants misrepresented and/or failed to disclose that: the Company was experiencing a substantial decline in demand from customers in its North American markets; the Company was rapidly depleting its free cash flow due to declining revenues and increasing expenses; and, therefore, defendants lacked a reasonable basis for their positive statements about the Company, its operations and future prospects.
On October 18, 2011, Powerwave issued a press release announcing anticipated revenues for quarter ended October 2, 2011 in the range of $75 million to $79 million. In a conference call conducted after the issuance of the press release, defendants admitted that the Company was performing poorly and rapidly depleting free cash. The next day, October 19, 2011, the price of Powerwave common stock declined 42%, from a close of $1.46 per share to a close of $0.85 per share, on extremely heavy trading volume.
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