Straight Path Communications Inc (NYSEMKT: STRP) Investor Securities Class Action Lawsuit 11/13/2015

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Company Name(s): 
Straight Path Communications
Case Name: 
Straight Path Communications Shareholder Class Action Lawsuit 11/13/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSEMKT: STRP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/13/2015
Class Period Begin: 
08/01/2013
Class Period End: 
07/22/2016
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
01/12/2016
Date Settled: 
02/02/2018
Settlement Amount: 
$9,450,000
Deadline to Participate in Settlement: 
08/02/2018
Summary: 

February 2, 2018 - The court preliminarily approved the settlement.

December 5, 2017 - Parties filed an amended stipulation of settlement.

October 10, 2017 - Parties filed a stipulation of settlement.

August 16, 2016 - Defendants filed a motion to dismiss.

June 17, 2016 - The lead plaintiff filed an amended complaint.

April 11, 2016 - Lead plaintiff and lead counsel were appointed.

January 12, 2016 - Lead plaintiff motions were filed.

November 13, 2015 - An investor in shares of Straight Path Communications Inc (NYSEMKT: STRP) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Straight Path Communications Inc in connection with certain allegedly false and misleading statements made between October 29, 2013 and November 5, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Straight Path Communications Inc (NYSEMKT: STRP) common shares between October 29, 2013 and November 5, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 29, 2013 and November 5, 2015 defendants issued allegedly materially false and misleading statements to investors and/or allegedly failed to disclose that the commercialization prospect for Straight Path Communications Inc’s spectrum assets is less than touted, that Straight Path Communications Inc’s spectrum licenses were improperly obtained, and that as a result, Straight Path Communications Inc’s public statements were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Straight Path Communications Inc reported that its Total Revenue rose from $4.80 million for the 12 months period that ended on July 31, 2014 to $13.24 million for the 12 months period that ended on July 31, 2015.

Shares of Straight Path Communications Inc (NYSEMKT: STRP) grew from $21.31 per share in late August 2015 to as high as $50 per share on October 23, 2015.

Then on October 29, 2015, an article entitled “Straight Path Communications Inc.: The Next Generation Of Overblown Spectrum Hype” was published. The article, by hedge fund manager Kerrisdale Capital Management, alleges that Straight Path Communications is worth at least “90% less than its current market cap” due to, among other things: shortcomings in its spectrum, low demand contrasted with high supply, and difficulties of practical mmWave deployments.

On the same day Straight Path Communications Inc issued a statement in response to the report released by Kerrisdale Capital.

On November 5, 2015, another report was published on Straight Path Communications Inc alleging that “there is overwhelming evidence that the vast majority of Straight Path Communications' 39 GHz spectrum licenses' Required Notification of Construction/Coverage Applications were obtained under fraudulent misrepresentation.”

Shares of Straight Path Communications Inc (NYSEMKT: STRP) declined on November 13, 2015, to as low as $8.86 per share.