Schoengold Sporn Laitman & Lometti, P.C. Announces That It Has Filed a Class Action Lawsuit on Behalf of Institutional Investor Against Wireless Facilities Inc. (NASDAQ: WFII)
Market Wire, April, 2007
Schoengold Sporn Laitman & Lometti, P.C. announced today that the firm has filed a class action lawsuit on behalf of the Laborers Local 190 Pension Fund against Wireless Facilities Inc. ("WFI," "Wireless Facilities" or the "Company") (NASDAQ: WFII) and certain key officers and/or directors in the United States District Court for the Southern District of California. This action has been brought on behalf of all those who purchased or otherwise acquired WFI securities during the period between March 29, 2002 and March 12, 2007, inclusive (the "Class Period"). If you acquired WFI securities during the Class Period and would like to join the action pursuing securities claims against defendants, you may do so by visiting Schoengold Sporn Laitman & Lometti's website at www.spornlaw.com or contacting Schoengold Sporn Laitman & Lometti, toll-free at (866) 348-7700 or via e-mail at shareholderrelations@spornlaw.com . However, please note that the deadline to seek lead plaintiff status in this case expires May 18, 2007.
The complaint alleges that during the Class Period, defendants violated Sections 10(b), 14(a), and 20(a) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14a-9 promulgated thereunder by making false and misleading statements and omissions regarding the Company's business, accounting practices and financial results to artificially inflate the value of WFI stock. Specifically, it is alleged that throughout the Class Period, defendants engaged in improper practices of backdating of stock option grants to the Company's executive management, resulting in option grants with lower exercise prices and thereby improperly increasing the value of the options and improperly reducing the amounts the options recipients had to pay the Company upon exercise of the options, and unfairly transferring shareholder equity to defendants. Defendants' conduct also violated the provisions of the Internal Revenue Code relating to deduction of option payments. Thus, the Complaint alleges, Wireless Facilities' financial statements, Form 10-K filings for the years 2000, 2001, 2002, 2003, 2004 and 2005 and Form 10-Q quarterly filings, were materially false and misleading.
The Company shocked the investing public when, on March 12, 2007, it disclosed that it has been conducting an ongoing internal review of past practices for granting stock options and that it would delay its 2006 annual financial results after an internal review uncovered incorrect measurement dates for stock option grants issued between 1998 and 2003. The Company further revealed that "there is a strong likelihood" that it will restate financial results issued during this period. As a result, on March 13, 2007, WFI stock price plummeted to $1.62 per share from its prior day close of $2.10, a 23% drop in one day, on massive volume.
Since then, on March 28, 2007, WFI announced in a press release that, as a result of not having timely filed "its Annual Report on Form 10-K for the fiscal year ended December 31, 2006," it received "as expected," "a NASDAQ Staff Determination notice on March 22, 2007, indicating the Company is not in compliance with the NASDAQ requirements for continued listing... and its securities, therefore, are subject to delisting from NASDAQ."
If you purchased Wireless Facilities securities during the Class Period and either sold those securities at a loss or still hold them, you may request that the Court appoint you as a lead plaintiff. However, you must do so no later than May 18, 2007.
Schoengold Sporn Laitman & Lometti was established in 1962 and has specialized in securities fraud litigation for over 35 years. The firm was cited by The Wall Street Journal in a study of the largest recoveries, as a percentage of overall damages, for its recoveries in the Anadigics and Versatility cases, which ranked first and third for recovering 44% and 30%, respectively, of plaintiffs' overall losses. Most recently, in 2004, the firm recovered $40 million for a class of Nicor, Inc. shareholders, representing approximately 35% of reasonably recoverable damages.
If you would like to further discuss your rights, you may call collect or otherwise contact the undersigned, who will be pleased to assist:
CONTACT: Ashley Kim, Esq. Ms. Rachel Conaboy Schoengold Sporn Laitman & Lometti, P.C. 19 Fulton Street, Suite 406 New York, New York 10038 Tel: (212) 964-0046 Fax: (212) 267-8137 Toll Free: (866) 348-7700 E-Mail: Email Contact Website: www.spornlaw.com
Most Recent Business Articles
- Multiple criteria evaluation and optimization of transportation systems
- Multi-criteria analysis procedure for sustainable mobility evaluation in urban areas
- A two-leveled multi-objective symbiotic evolutionary algorithm for the hub and spoke location problem
- Multi-criteria analysis for evaluating the impacts of intelligent speed adaptation
- The development of Taiwan arterial traffic-adaptive signal control system and its field test: a Taiwan experience
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- LIFO vs. FIFO: a return to the basics
- Too Young to Rent a Car? - 25-years-old the minimum age for car renting - Brief Article
- Design a commission plan that drives sales - Sales Commissions



