Schatz & Nobel, P.C. Announces Class Action Lawsuit Against KVH Industries, Inc.
July 24 2004 - 12:03AM
PR Newswire (US)
Schatz & Nobel, P.C. Announces Class Action Lawsuit Against KVH
Industries, Inc. HARTFORD, Conn., July 23 /PRNewswire/ -- The law
firm of Schatz & Nobel, P.C., which has significant experience
representing investors in prosecuting claims of securities fraud,
announces that a lawsuit seeking class action status has been filed
in the United States District Court for the District of Rhode
Island on behalf of all persons who purchased the publicly traded
securities of KVH Industries, Inc. (NASDAQ:KVHI) ("KVH") between
January 6, 2004 and July 2, 2004, inclusive (the "Class Period").
Also included are all those who purchased KVH's shares in the
offering on or about February 13, 2004. The Complaint alleges that
KVH and certain of its officers and directors issued materially
false statements concerning KVH's financial condition and the
demand for its newly developed TracVision A5 and G8 satellite TV
systems "TracVision systems". Specifically, defendants failed to
disclose: (i) that KVH had stuffed the retail channels with
overpriced TracVision systems; (ii) revenues were not growing by
millions of dollars per quarter and the purported growth trends in
KVH's revenues could not be sustained; and (iii) KVH had not
realized any material cost reduction in the manufacture of its
TracVision systems and would be forced to write-down its inventory
of manufactured goods by millions of dollars. It is alleged that
defendants concealed these adverse facts in order to complete a
public offering of KVH common stock, raising more than $51.5
million in much needed capital. On or about July 6, 2004 KVH
announced that it was slashing the retail price of its TracVision
systems by more than 34% and taking a multi-million dollar write
down of vendor purchase commitments and on-hand inventories to
reflect the true value of KVH's TracVision systems sales. In
pre-opening market trading, KVH common stock declined more than
19%, to open at $9.51 per share on July 6, 2004, a 49% decline from
the public offering price. If you are a member of the class, you
may, no later than September 20, 2004 request that the Court
appoint you as lead plaintiff of the class. A lead plaintiff is a
class member that acts on behalf of other class members in
directing the litigation. Although your ability to share in any
recovery is not affected by the decision whether or not to seek
appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class
members, including decisions concerning settlement. The securities
laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
plaintiff(s). For more information about the case, its claims, and
your rights, please contact Schatz & Nobel toll-free at (800)
797-5499, or by e-mail at . To view a copy of the lawsuit
initiating the class action, or for more information about class
action cases and Schatz & Nobel, please visit our website:
http://www.snlaw.net/. DATASOURCE: Schatz & Nobel, P.C.
CONTACT: Nancy A. Kulesa, Schatz & Nobel, P.C.,
+1-800-797-5499, Web site: http://www.snlaw.net/
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