Shareholder Class Action Filed Against Wave Systems Corporation by the Law Firm
of Schiffrin & Barroway, LLP
BALA CYNWYD, Pa., Feb. 11 /PRNewswire/ --
The following statement was issued
today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the District of Massachusetts on behalf of all
purchasers of the common stock of Wave Systems Corporation (NASDAQ:WAVX) ("Wave
Systems" or the "Company") from July 31, 2003 through December 18, 2003,
inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice
or your rights or interests with respect to these matters, please contact
Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll
free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .
The complaint charges Wave Systems, Steven Sprague and Gerard T. Feeney with
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 commenced a 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.
Plaintiff seeks to recover damages on behalf of class members and is represented
by the law firm of Schiffrin & Barroway, which prosecutes class actions in both
state and federal courts throughout the country. Schiffrin & Barroway is a
driving force behind corporate governance reform, and has recovered in excess of
a billion dollars on behalf of institutional and high net worth individual
investors. For more information about Schiffrin & Barroway, or to sign up to
participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than 60
days from the date of the first-issued notice move the Court to serve as lead
plaintiff of the class, if you so choose. In order to serve as lead plaintiff,
however, you must meet certain legal requirements. You may retain Schiffrin &
Barroway, LLP, or other counsel of your choice, to serve as your counsel in this
action.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
DATASOURCE: Schiffrin & Barroway, LLP
CONTACT: Marc A. Topaz, Esq. or Stuart L. Berman, Esq., Schiffrin &
Barroway, LLP, +1-888-299-7706 or +1-610-667-7706,
Web site: http://www.sbclasslaw.com/