NextWave Wireless Inc (NASDAQ: WAVE) Investor Securities Class Action Lawsuit 09/16/2008

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Company Name(s): 
NextWave Wireless
Case Name: 
NextWave Wireless Shareholder Class Action Lawsuit 09/16/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: WAVE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/16/2008
Class Period Begin: 
11/14/2006
Class Period End: 
08/07/2008
Court of Filing: 
U.S. District Court for the Southern District of California
Deadline To File for Lead: 
11/16/2008
Date Settled: 
11/09/2012
Settlement Amount: 
$1,400,000
Deadline to Participate in Settlement: 
12/10/2012
Summary: 

November 9, 2012 - The court approved the settlement entered the orders approving the plan of allocation, the motion for attorneys' fees and expenses, and dismissed the action with prejudice.

July 25, 2012 - The court preliminarily approved the settlement.

June 29, 2012 - Parties filed stipulation of settlement.

June 25, 2012 - The court dismissed the appeal without prejudice for settlement purposes.

December 19, 2011 - The lead plaintiff filed a notice of appeal.

November 21, 2011 - The court granted the defendants' motion to dismiss with prejudice

June 6, 2011 - Defendants filed a motion to dismiss.

May 5, 2011 - The lead plaintiff filed a third amended consolidated complaint.

March 16, 2011 - The court granted the defendants' motion to dismiss and granted the plaintiff leave to file an amended complaint.

April 30, 2010 - Defendants filed a motion to dismiss.

March 26, 2010 - The lead plaintiff filed a second amended consolidated complaint.

March 5, 2010 - The court granted the defendants' motion to dismiss and granted the plaintiff leave to file an amended complaint.
August 19, 2009 - Defendants filed a motion to dismiss.

May 15, 2009 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased WAVE common shares between November 14, 2006 and August 7, 2008. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between November 14, 2006 and August 7, 2008.

February 24, 2009 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

November 17, 2008 - Lead plaintiff motions were filed.

September 16, 2008 - An investor in shares of NextWave Wireless Inc (NASDAQ: WAVE) filed a lawsuit in the U.S. District Court for the Southern District of California against NextWave Wireless Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges NextWave Wireless Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that between March 30, 2007 August 7, 2008 defendant issued materially false and misleading statements regarding NextWave Wireless Inc’s business and financial results.

The complaint alleges that the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) NextWave Wireless Inc 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 Wireless Inc'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 Wireless Inc's fragile liquidity position and NextWave Wireless Inc did not have the financial resources to continue to operate its world-wide operations through the end of 2008; (d) NextWave Wireless Inc 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 Wireless Inc ability to continue as a going concern was seriously in question by reason of the facts alleged in subparagraphs (a)-(d) above.

As a result of defendants’ false statements, NextWave Wireless Inc (NASDAQ: WAVE) stock traded at artificially inflated prices during the Class Period, reaching as high as $10.10 per share in June 2007. Then according to the lawsuit, on August 7, 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 30, 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 (NASDAQ: WAVE) 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 (NASDAQ: WAVE) common stock between March 30, 2007 and August 7, 2008.

NextWave Wireless Inc is a mobile broadband and multimedia technology company that develops, produces and markets mobile multimedia and wireless broadband products.