| Company: | NextWave Wireless Inc. |
| Ticker Symbol: | WAVE |
| Class Period: | Nov-27-06 to Aug-7-08 |
| Date Filed: | Sep-16-08 |
| Lead Plaintiff Deadline: | Nov-15-08 |
| Court: | Southern District of California |
| Allegations: | |
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 $12.75 per share in January 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 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.
Plaintiff seeks to recover damages on behalf of all purchasers of NextWave common stock during the Class Period (the "Class").
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
