Cauley Geller Announces Class Action Lawsuit Against Wave Systems, Inc. On Behalf of Investors

Date : 02/11/2004 @ 12:06PM
Source : PR Newswire
Stock : Wave Systems (MM) (WAVX)
Quote : 0.44  -0.002 (-0.45%) @ 8:00PM
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Cauley Geller Announces Class Action Lawsuit Against Wave Systems, Inc. On Behalf of Investors

Cauley Geller Announces Class Action Lawsuit Against Wave Systems, Inc. On Behalf of Investors

NEW YORK, Feb. 11 /PRNewswire/ -- The Law Firm of Cauley Geller Bowman & Rudman, LLP announced today that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of purchasers of Wave Systems, Inc. ("Wave Systems" or the "Company") common stock during the period between July 31, 2003 and December 18, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/show_case.asp?ccode=243&pcode=10&pp=4 .

The complaint charges Wave Systems, Steven Sprague and Gerard T. Feeneywith violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that throughout the Class Period, the defendants issued a series of material misrepresentations to the market concerning the Company's business agreements with Intel Corporation ("Intel") and IBM. In truth and in fact, however, unbeknownst to investors, the defendants' statements during the Class Period were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that Intel would not be entering into a revenue producing licensing agreement with the Company; (2) that the Intel contract did not require Intel to purchase any software; and (3) that IBM was not embedding Wave Systems' software into IBM computers; and (4) that the IBM transaction would provide no direct revenue to the Company.

On December 18, 2003, Wave Systems reported that the SEC had commenceda formal investigation into certain matters relating to Wave Systems. The SEC's investigative order, received by Wave Systems on December 17, 2003, related to certain public statements made by Wave Systems during and around August 2003, as well as certain trading in Wave Systems' securities during such time. News of this shocked the financial market. Shares of Wave Systems fell 17.13%, or $0.31 per share, to close at $1.50 per share on extremely high volume on December 19, 2003.

If you bought Wave Systems common stock between July 31, 2003 and December 18, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than April 5, 2004. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/template8.asp?pcode=6&pp=1 . Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.

Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accountingspecialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York.

If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at http://www.cauleygeller.com/.

Contact:

CAULEY GELLER BOWMAN & RUDMAN, LLP

Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.

Client Relations Department: Jackie Addison, Heather Gann or Chandra West P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 Fax: 1-501-312-8505 E-mail:

DATASOURCE: Cauley Geller Bowman & Rudman, LLP

CONTACT: Samuel H. Rudman, Esq., or David A. Rosenfeld, Esq., both of

Cauley Geller Bowman & Rudman, LLP, +1-631-367-7100

Web site: http://www.cauleygeller.com/

http://www.cauleygeller.com/template8.asp?pcode=6&pp=1

http://www.cauleygeller.com/show_case.asp?ccode=243&pcode=10&pp=4

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