Cauley & Geller, LLP Announces Class Action Lawsuit Against Pacific Gateway Exchange, Inc. Seeking Damages On Behalf of Shareholders.Business Editors & Legal Writers BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--April 18, 2000 The Law Firm of Cauley & Geller, LLP LLP - Lower Layer Protocol announced today that it has filed a class action in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Northern District of Califrnia on behalf of all individuals and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. that purchased the securities of Pacific Gateway Exchange, Inc. ("Pacific" or the "Company") (Nasdaq:PGEX) between May 13, 1999 and March 31, 2000, inclusive (the "Class Period"). The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition. As a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Specifically, the Complaint alleges that while the defendants were publicly reporting profits of more than $10.1 million for Pacific's first, second and third quarters of 1999, defendants used Pacific common stock to acquire the assets of Robo Tel, Inc. and attempted to use its stock to fund its most important acquisition ever, the acquisition of NOS Communications, Inc., just weeks before revelations of accounting fraud had surfaced. After the market had closed, on March 31, 2000, Pacific shocked investors, revealing that it would restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state its first, second and third quarter earnings for 1999. This revelation caused Pacific stock to plummet to $10-1/4 per share, a decline of 75% from its Class Period high the following trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. . Pacific's shares continued their descent to $7-1/2 in the days that followed. Cauley & Geller, LLP has substantial experience representing investors in securities fraud class action lawsuits class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. 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 must take appropriate action by June 6, 2000. You are encouraged to call or e-mail the Firm. |
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