Shareholders of a wireless internet firm recently reached a securities class action settlement of a lawsuit involving the two parties.
Law firm Robbins Geller Rudman and Dowd, LLP, noted that the settlement is for shareholders of Novatel Wireless, Inc. This includes any individuals who acquired interests in the company during the class period between Feb. 27, 2007, and Sept. 15, 2008. The settlement action will be overseen by U.S. District Judge Anthony Battaglia from the U.S. District Court of California.
The pending settlement would provide $16 million to the class, and the judge will determine if this is fair to all parties. He will also seek to learn if the payment structure to the shareholders and attorneys is satisfactory and how much the lead plaintiffs should be paid.
For those stockholders who want to collect from the settlement, it is important to have all proper paperwork. This includes the proof of claim and release and the notice of proposed settlement of class action, which can be acquired from the claims administrator. The proof of claim and release needs to be mailed by June 30, 2014, and those who do not do this will not be eligible, but still bound by the decision.
Those individuals who have issues with the settlement for any reason need to file objections to the court by May 30, 2014. Any individuals who would prefer to be excluded from any decision can also contact the claims administrator.
Lawsuit entered by law firm
A law office noted that it filed the class action claim against the wireless internet company due to allegations of securities law violations back in 2008.
The Brualdi Law Firm, P.C., filed the securities class action lawsuit against Novatel Wireless, in the U.S. District Court for the Southern District of California on behalf of the company's shareholders. Its class period was between Feb. 5, 2007, and Aug. 19, 2008.
Shareholders alleged that the company's leaders were not honest about its financial performance, as it may have been counting revenue that was actually violating its cut-off procedures. This made the financial results sent to stockholders inaccurate.
The company also had an accounting review from its audit committee, which prevented it from filing a Form 10-Q with the Securities and Exchange Commission. The review continued until the latter part of the year, and this hurt the stock significantly.