NextWave Wireless Inc. Case 09/16/2008

July 25, 2012 (Update) -- Settlement proposed in the NextWave Wireless Inc. class action for those who held shares of NASDAQ: WAVE from 11/14/06 through 08/07/08. Settlement in the amount of $1,400,000.

March 2011 -- The court has again granted the defendants' motion to dismiss the case without prejudice, granting Lead Plaintiff the opportunity to replead.

March 2010 -- On March twenty-sixth, a second amended consolidated complaint for violation of the federal securities laws was filed by the plaintiffs against the defendants in this action.

On March fifth, the Court issued an order granting Defendants' Motion to Dismiss without prejudice and allowed Plaintiff to file an amended complaint within 21 calendar days of the date the order.

May 2009 - A Consolidated Amended Complaint For Violation Of The Federal Securities Laws was filed with the court.

10/21/2008 - Class Expanded

The initial class action filed on Tuesday September 16, 2008 in in the United States District Court for the Southern District of California was on behalf of purchasers of NextWave Wireless Inc. (NASDAQ:WAVE) common stock during the period between March 30th, 2007 and August 7th, 2008 against NextWave and certain of its officers and directors over allegedly materially false and misleading statements regarding its business and financial results. According to a law firm the class action will be expanded back until November 27, 2006. Thus proposed new expanded class period will be on behalf of purchasers of NextWave Wireless Inc. (“NextWave”) (NASDAQ:WAVE) common stock during the period between November 27th, 2006 and August 7th, 2008 over allegedly materially false and misleading statements regarding its business and financial results..

09/16/2008 - Lawsuit Filed

According to a law firm press release, the complaint charges NextWave and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NextWave is a mobile broadband and multimedia technology company that develops, produces and markets mobile multimedia and wireless broadband products.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, NextWave stock traded at artificially inflated prices during the Class Period, reaching as high as $10.10 per share in June 2007.

On August 7, 2008, after the market closed, Nextwave issued its second quarter 2008 financial results, announcing it only had $71.1 million in cash and similar instruments available as of June 30, 2008 and, unless it raised money, its cash would run out at the beginning of October 2008. As a result, the Company was seeking financing that would give the Company enough money to operate through June 2009. On this news, NextWave’s stock fell $1.90 per share to close at $0.95 per share, a one-day decline of 67%.

According to the complaint the plaintiff accuses NextWave and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
Specifically the stockholder alleges that between March 30th, 2007 and August 7th, 2008 the defendants issued materially false and misleading statements regarding the Nextwave Wireless Inc.’s business and financial results. As a result of these statements, NextWave stock traded at artificially inflated prices between March 30th, 2007 and August 7th, 2008 reaching as high as $10.10 per share in June 2007, so the lawsuit. Then according to the lawsuit on August 7th, 2008, after the market closed, Nextwave Wireless Inc. issued its second quarter 2008 financial results, announcing it only had $71.1 million in cash and similar instruments available as of June 30th, 2008 and, unless it raised money, its cash would run out at the beginning of October 2008 and as a result Nextwave Wireless Inc. was seeking financing that would give Nextwave Wireless Inc. enough money to operate through June 2009. The shareholder alleges that on this news, NextWave Wireless Inc.’s stock fell $1.90 per share to close at $0.95 per share, a one-day decline of 67% and the true facts, which were known by the defendants but concealed from the investing public. Plaintiff seeks to recover damages on behalf of all purchasers of NextWave Wireless Inc. common stock between March 30th, 2007 and August 7th, 2008.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) NextWave did not have adequate sources of liquidity to continue operations as it executed its growth strategy and continued making aggressive worldwide acquisitions; (b) defendants had no reasonable basis to make favorable statements that the Company’s WiMAX semiconductor products would be available for commercial sale in the first half of 2008; (c) NextWave’s growth and acquisition strategy was not financially successful and did not provide the basis for continued growth or financial success because it was straining NextWave’s fragile liquidity position and NextWave did not have the financial resources to continue to operate its world-wide operations through the end of 2008; (d) NextWave failed to timely disclose that it had invested all of its marketable securities in extremely high-risk and illiquid auction rate securities; and (e) NextWave’s ability to continue as a going concern was seriously in question by reason of the facts alleged in subparagraphs (a)-(d) above.